Question
The Daily Brew has a debt-equity ratio of .64. The firm is analyzing a new project that requires an initial cash outlay of $420,000 for
The Daily Brew has a debt-equity ratio of .64. The firm is analyzing a new project that requires an initial cash outlay of $420,000 for equipment. The flotation cost is 9.6 percent for equity and 5.4 percent for debt. What is the initial cost of the project including the flotation costs?
A.$302,400
B.$368,924
C.$456,328
D.$456,700
E.$583,333
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International Finance Exchange Rates And Financial Flows In The International Financial System
Authors: Heather D. Gibson
1st Edition
0582218128, 978-0582218123
