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The cost incurred in raising funds is called:
AOpportunity cost
BReplacement cost
CDistribution cost
DFloatation cost
Answer & Solution
Correct answer: D. Floatation cost
1. It must be weighed when comparing sources.
2. The higher it is, the less attractive the source.
3. This is the floatation cost.
_Source: NCERT Class 12 Business Studies Part II, Chapter 9, Financial Management._
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