Question
BBC borrows $7,572 (which includes a 4.7% flotation cost) at a subsidized rate of 1.6% to finance a 4-year project. If the cost of debt
BBC borrows $7,572 (which includes a 4.7% flotation cost) at a subsidized rate of 1.6% to finance a 4-year project. If the cost of debt is 5.3% and corporate tax is 32%, calculate the net present value of the flotation cost. ANS till 4 decimal places
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Essentials Of Corporate Finance
Authors: Stephen A. Ross, Randolph W. Westerfield, Bradford D. Jordan
9th International Edition
1259254801, 9781259254802
