Question
Speedy Ltd needs $15,000,000 for a new project. The flotation cost for new equity is 7.2%, but the flotation cost for new debt is 2.5%.
Speedy Ltd needs $15,000,000 for a new project. The flotation cost for new equity is 7.2%, but the flotation cost for new debt is 2.5%. Companys target capital structure is 60% equity and 40% debt, and the relevant tax rate is 30%. What is Speedy Ltds weighted average flotation cost?
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Chronic Regulatory Focus And Financial Decision Making Asset And Portfolio Allocation
Authors: Navin Kumar
1st Edition
9812876936, 978-9812876935
