Question
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
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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International Financial Management
Authors: Geert Bekaert, Robert Hodrick
3rd edition
1107111820, 110711182X, 978-1107111820
