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2. Answer in dollar amount Tiki Corp. has a debt -equity ratio of 90. The company is considering a new plant that will cost $113
2. Answer in dollar amount
Tiki Corp. has a debt -equity ratio of 90. The company is considering a new plant that will cost $113 million to build. When the company issued new equity, it incurs a flotation cost of 8.3%. The flotation cost on a new debt is 3.8%. What is the initial cost of the company raises all equity externally? do not round intermediate calculations and enter your answer as percent rounded to 2 decimal places Initial cash flow = What is the initial cost of the plant if the company usually uses 60% retained earnings? (do not round intermediate calculations and enter your answer as percent rounded to 2 decimal places) Initial cash flow = What is the initial cost of the plant if the company typically used 100 percent retained earnings? (do not round intermediate calculations and enter your answer as percent rounded to 2 decimal places) Initial cash flow = Step by Step Solution
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