Question
The TRIM Corporation has decided to build a new facility for its R&D department. The cost of the facility is estimated to be $150 million.
The TRIM Corporation has decided to build a new facility for its R&D department. The cost of the facility is estimated to be $150 million. TRIM wishes to finance this project using its traditional debt-equity ratio of 1.2. The issue cost of equity is 7% and the issue cost of debt is 2%. What is the total flotation cost?
$3.00 million
$5.59 million
$6.75 million
$6.41 million
$10.5 million
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Handbook Of Project Finance For Water And Wastewater Systems
Authors: Michael Curley
1st Edition
0873714865, 978-0873714860
