Purchase Solution

issuance costs and mispricing costs

Not what you're looking for?

Ask Custom Question

Why should issuance costs and mispricing costs be included in the assessment of the project's value? How do you include them?

Book: Corporate Finance: The Core, 2nd ed.

Purchase this Solution
Solution Summary

The response addresses the queries posted in 611 words with references.

Solution Preview

Value of the project represents the worth of project in terms of money that can be calculated by the assessment of cost, expenses and income associated with the project. This paper includes that why should issuance cost and mis-pricing costs be included in the assessment of the project's value as well as it defines that the process to include them.

Project management is now a valuable entity of every organization, which provides a valuable support by managerial, technical, administrative and training services. Every organisation is now leading to improve their overall effectiveness of the project. To improve the effectiveness, every firm is using quantitative assessment of the project. Quantitative assessment is related to valuation of the project that defines it in terms of money by analyzing economic, technical, service and social conditions. It represents that how much a firm receives in exchange of the price paid for a market ...

Solution provided by:
Ashish Sharma, MBA (IP)
Education
  • MBA (IP), International Center for Internationa Business
  • BBA, University of Rajasthan
Recent Feedback
  • "Thank You so much! "
  • "Always provide great help, I highly recommend Mr. Sharma over others, thanks again. "
  • "great job. I will need another help from you. "
  • "first class!"
  • "Thank you for your great notes. Will you be willing to help me with one more assignment? "
Purchase this Solution
Free BrainMass Quizzes
Introduction to Finance

This quiz test introductory finance topics.

Situational Leadership

This quiz will help you better understand Situational Leadership and its theories.

Team Development Strategies

This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.

Income Streams

In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.

IPOs

This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)

View More Free Quizzes
Related BrainMass Solutions

  • Twitter's Finance IPO

    (ii) The another mistake that lead to mispricing of Google IPO is the less rigorous scrutiny by investment banks associated with Google in its IPO issuance process and at the same time consequent reduction in information provided by Google.

  • Stock Issuance Costs

    122764 Stock Issuance Costs 16. How are stock issuance costs and direct consolidation costs treated in a business combination which is accounted for as a purchase, when the subsidiary will retain its incorporation?

  • Stephens Security has two financing alternatives

    The expert compares borrowing costs and the annual percentage yield.

  • Lower Borrowing Cost.

    Issuance costs are $1 million, the bond has a 9% coupon paid semiannually, and the bond has a 20-year life. (2) A $50 million private placement with a large pension fund.

  • Comparing borrowing costs - Stephens Security

    Issuance costs are $1 million, the bond has a 9% coupon paid semiannually, and the bond has a 20-year life. (2) A $50 million private placement with a large pension fund.

  • Allocation of interest costs

    Of a $20,000,000 bond issuance, the Electric Mixer Division used $14,000,000 and the Electric Lamp Division used $6,000,000 for expansion. Interest costs on the bond totaled $1,500,000 for the year.

  • Choosing Between Two Financing Options

    Issuance costs are $500,000, the bond has a 9.25% annual coupon, and the bond has a 20-year life. Which alternative has the lower cost (annual percentage yield)?

  • Capital Structure: Stephens Security

    Issuance costs are $1 million, the bond has a 9% coupon paid semiannually, and the bond has a 20 year life. (2) A $50 million private placement with a large pension fund.

  • Comparing borrowing costs - A2

    251656 Comparing borrowing costs - A2 Stephens Security has two financing alternatives (1) A publicly placed $50 million bond issue. Issuance costs are $1 million, the bond has a 9% coupon paid semiannually, and the bond has a 20-year life.

View More Related Solutions