Question
Kamara Manufacturing has a debt-equity ratio of 0.4. The firm is analyzing a new project that requires an initial cash outlay of $269,000 for equipment.
Kamara Manufacturing has a debt-equity ratio of 0.4. The firm is analyzing a new project that requires an initial cash outlay of $269,000 for equipment. The flotation cost is 10.9 percent for equity and 6.2 percent for debt. What is the initial cost of the project including the flotation costs?
Total initial cost = $
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Securitisation Derivatives A Practioner's Handbook
Authors: Mark Aarons, Vlad Ender, Andrew Wilkinson
1st Edition
1119532272, 978-1119532279
