Question
A company has a debt-equity ratio of 80%. They are considering a new project which requires an initial cash outlay of $300,000. The flotation cost
A company has a debt-equity ratio of 80%. They are considering a new project which requires an initial cash outlay of $300,000. The flotation cost for new equity is 9% and for debt 4.5%.
What is the weighted average flotation cost and what is the initial cost of the project including the flotation costs?
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Investing In Financial Research A Decision Making System For Better Results
Authors: Cheryl Strauss Einhorn, Tony Blair
1st Edition
1501732757, 9781501732751
