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Harmon, Inc. has a debt-equity ratio of.80. The firm is analyzing a new project which requires an initial cash outlay of $300,000 for new equipment.
Harmon, Inc. has a debt-equity ratio of.80. The firm is analyzing a new project which requires an initial cash outlay of $300,000 for new equipment. The flotation cost for new equity is 9 % and for debt 4.5 %. What is the initial cost of the project including the flotation costs? Select one: A. $317,125 B. $320,856 C. $321,000 O D. $322,581 O E. $325,912
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