Question
The expansion project at Zingerman requires an initial investment of $10,000,000. The target D/E ratio is 3/2 for the firm. Flotation costs are 10% for
The expansion project at Zingerman requires an initial investment of $10,000,000. The target D/E ratio is 3/2 for the firm. Flotation costs are 10% for equity and 4% for debt. How much funds have to be raised for this project taking into account the flotation costs?
A. 9,360,000
B.10,640,000
C.10,683,761
D. 10,822,511
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The Smart Investors Survival Guide
Authors: Charles Carlson
1st Edition
0385503873, 978-0385503877
