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路 FLOTATION COST The oil mixtures generally in use will cost from up to 3c per lb depending on the proportion of cresol and other high priced oils used but 1陆c per lb will be a safe average on most oils A consumption of 1 to 1陆 lb per ton or from to per ton of feed say 2陆c would be a safe average The labor of course will vary with the size of the plant At
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路 FLOTATION COST The oil mixtures generally in use will cost from up to 3c per lb depending on the proportion of cresol and other high priced oils used but 1陆c per lb will be a safe average on most oils A consumption of 1 to 1陆 lb per ton or from to per ton of feed say 2陆c would be a safe average The labor of course will vary with the size of the plant At
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Flotation Costs in Capital Budgeting A Note on the Tax Effect Carl M Hubbard Carl M Hubbard is Associate Professor of Finance at Trinity University in San Antonio Texas Ezzell and Porter [2] were among the first to formal ly recognize the errors of inflating the cost of capital to incorporate flotation costs Their paper concluded with a net present value model adjusted for flotation
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Flotation Costs in Capital Budgeting A Note on the Tax Effect Carl M Hubbard Carl M Hubbard is Associate Professor of Finance at Trinity University in San Antonio Texas Ezzell and Porter [2] were among the first to formal ly recognize the errors of inflating the cost of capital to incorporate flotation costs Their paper concluded with a net present value model adjusted for flotation
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Mobile flotation unit Output 10 m3路h 1 Comment on floatation cells that do not implement gas relaxation Dissolved air floatation cells must not be mistaken for devices where water is in contact with bubbles coming from fine bubble diffusers or produced by moderated pressure by mechanical shearing either in an emulsion pump or in a hydroejector
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The Solid Flotation Oil Boom is a light weight and cost effective boom solution that can be deployed in multiple environments industrial sites rivers and harbors and other calm waters The SFB is manufactured from high visibility PVC and is easy to deploy and recover The cylindrical floats inside the boom are made of closed cell The boom has a top tension cable that is enclosed
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路 Flotation Costs The required return depends on the risk not how the money is raised However the cost of issuing new securities should not just be ignored either Basic Approach Compute the weighted average flotation cost f A E / V f E D / V f D 30 NPV and Flotation Costs example A company is considering a project that will cost $1 million The project will generate after tax cash flows
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路 In our example we recognized flotation costs as one of the incremental costs of undertaking the project But instead of recognizing these costs explicitly some companies attempt to cope with flotation costs by increasing the cost of capital used to discount project cash flows By using a higher discount rate project present value is reduced This procedure is flawed on practical as well
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路 Flotation costs are those costs that are incurred by a company during the process of raising additional capital The value of these flotation costs is typically related to the amount and type of capital being raised Whenever debt and preferred stock are being raised flotation costs are not usually incorporated in the estimated cost of capital
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The current price of the equity share is per share and the flotation cost of new share is Rs per share The dividend of Rs 3 is expected at the end of current year and the dividends paid for the last 6 year are Rs and Rs respectively Find out the growth rate cost of retained earnings and cost of equity capital
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路 B flotation costs are included C growth is not considered D the capital asset pricing model can be used Question 15 Expected cash dividends are $ the dividend yield is 6% flotation costs are 4% of price and the growth rate is 3% Compute cost of new common stock A % B % C % D % Question 16
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Banno Ltd issued 8% 100 Debentures of 100 each and paid 1% flotation cost calculate cost of Debt in the following conditions when tax Rate is 40% 1 at PAR 2 at 5% Discount 3 at 10% Premium Ans a % b % c % Q3 NAMO Ltd issued 10% debentures of 100 each and paid flotation cost Rs 25 per debentures calculate cost of Debt if market price of Debenture is A Rs 125 B Rs
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Banno Ltd issued 8% 100 Debentures of 100 each and paid 1% flotation cost calculate cost of Debt in the following conditions when tax Rate is 40% 1 at PAR 2 at 5% Discount 3 at 10% Premium Ans a % b % c % Q3 NAMO Ltd issued 10% debentures of 100 each and paid flotation cost Rs 25 per debentures calculate cost of Debt if market price of Debenture is A Rs 125 B Rs
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