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B) Notice that private placement will require 0.5% (including flo using,0.5% din years. Calculate the present value this $25,000 additional (including floatation cost) in each

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B) Notice that private placement will require 0.5% (including flo using,0.5% din years. Calculate the present value this $25,000 additional (including floatation cost) in each higher interest payment ons snillion bonds each and every year for ten annual Calculate temative and then evaluate the two alternatives Public payments using 10.5% discount rate. Then calculate the total cost of raising money Total cost of raising money Private Which alternative is better on the total cost basis?No difference (Check one): No marks for unsupported answers Public Private- altemative ofiens to encgotiate the terns f the an ona later date in the future, which alternative offers you greater C) If you flexibility? Check one): Publie_ Private No difference Explanation Part3 IUnderwriting cost of issuing debt vs. underwriting cost of issuing equity] If a company raises $10 million in the market, The floatation cost of issuing S10 million of bonds (debt) is usually less than floatation cost of issuing S10 million of stocks (equity). Briefly explain why B) Notice that private placement will require 0.5% (including flo using,0.5% din years. Calculate the present value this $25,000 additional (including floatation cost) in each higher interest payment ons snillion bonds each and every year for ten annual Calculate temative and then evaluate the two alternatives Public payments using 10.5% discount rate. Then calculate the total cost of raising money Total cost of raising money Private Which alternative is better on the total cost basis?No difference (Check one): No marks for unsupported answers Public Private- altemative ofiens to encgotiate the terns f the an ona later date in the future, which alternative offers you greater C) If you flexibility? Check one): Publie_ Private No difference Explanation Part3 IUnderwriting cost of issuing debt vs. underwriting cost of issuing equity] If a company raises $10 million in the market, The floatation cost of issuing S10 million of bonds (debt) is usually less than floatation cost of issuing S10 million of stocks (equity). Briefly explain why

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