To finance the Madison County project, Wishing Well will have to arrange an additional $80 million of

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To finance the Madison County project, Wishing Well will have to arrange an additional

$80 million of long-term debt and make a $20 million equity issue. Underwriting fees, spreads, and other costs of this financing will total $4 million. How would you take this into account in valuing the proposed investment?

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Principles Of Corporate Finance

ISBN: 9780077398040

10th Edition

Authors: Richard Brealey

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Question Posted: Jul 31, 2024 03:01 AM

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To finance the Madison County project, Wishing Well will have to arrange an additional $80 million of

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