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Asian Foods needs $65,000 for a new project. The firm has a target capital structure of 25 percent debt and 75 percent external equity. The
Asian Foods needs $65,000 for a new project. The firm has a target capital structure of 25 percent debt and 75 percent external equity. The flotation cost of debt is 5.25 percent compared to 10.15 percent for equity. What amount does the firm need to raise?
a | $70,801.25 |
b | $76,211.17 |
c | $71,369.75 |
d | $69,497.79 |
e | $59,674.09 |
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