APV (Issue cost)

This topic has 1 reply, 2 voices, and was last updated 1 year ago by John Moffat.

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August 16, 2024 at 11:49 pm #709920
Amnakk
Participant
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Hi Mr. Moffat,
How can I know when to gross up the loan to get the issue cost and when we don’t need to.
For example if the loan is 10m and issue cost is 4%
Grossed up: (10M/0.96)*4%
Not grossed up: 10M *4%
Thank you in advance.
August 17, 2024 at 9:52 am #709943
John Moffat
Keymaster
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It depends on the wording of the question as to whether the issue costs are to come from the money raised or to come from existing funds.
Usually the question is clear on this, but if it is not clear then make an assumption (but state the assumption you have made).
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