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Your boss would like you to evaluate a project which requires $164,000 in external financing. The flotation cost of equity is 12 % and the
Your boss would like you to evaluate a project which requires $164,000 in external financing. The flotation cost of equity is 12 % and the flotation cost of debt is 5 %. You wish to maintain a debt-equity ratio of.55. What is the initial cost of the project including the flotation costs? Multiple Choice $177,226 $179,606 O $180,337 O O O $178,552 O $181,248
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