This article discusses how to make adjustments for flotation costs when appraising utility companies by including the adjustment to the weighted average cost of capital or the discount rate.
Valuation of public utilities
Tegarden, T. K. (2008). The appraisal of public utilities: Adjustment to the WACC for flotation costs. Journal of Property Tax Assessment & Administration, 5(1), 71-74. Retrieved from https://researchexchange.iaao.org/jptaa/vol5/iss1/4