Question
ANSWERS ARE BELLOW Question 2 Chris' Chai Tea Brewers has a debt-equity ratio of 0.74. The firm is analyzing a new project, which requires an
ANSWERS ARE BELLOW
Question 2
Chris' Chai Tea Brewers has a debt-equity ratio of 0.74. The firm is analyzing a new project, which requires an initial cash outlay of $343,500 for equipment. The flotation cost is 8.6 percent for equity and 4.4 percent for debt. What is the initial cost of the project including the flotation costs?
| $302,402 | ||
| $368,616 | ||
| $455,738 | ||
| $489,744 | ||
| $533,333 |
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Fundamentals Of Investments
Authors: Charles J. Corrado
3rd Edition
0072829192, 978-0072829198
