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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Security And Loss Prevention An Introduction
Authors: Philip Purpura CPP Florence Darlington Technical College
7th Edition
0128117958, 9780128117958
