The Make Belief Hockey Co. has a debt-equity ratio of.60. The firm is analyzing a new project which requires an initial cash outlay of $450,000 for new equipment. The flotation cost for new equity is 10 % and for debt 5 %. If the firm has a 40% tax rate, what is the initial cost of the project including the flotation costs?

Question 3 options:

	$473,856
	$483,750
	$486,563
	$486,486
	$413,438

The allocation percentage assigned to the number of shares desired by an individual tends to:

Question 13 options:

	Lead to economic profits for those investors.
	Be relatively constant over time.
	Favor the smaller investor.
	Be inversely related to the desirability of the IPO offering.
	Be directly related to the expected profits from acquiring the IPO shares.