Question
Your company needs $ 15 million to build a new assembly line. Your target debt-to-equity ratio is 0.6. The cost of issuing new equity is
Your company needs $ 15 million to build a new assembly line. Your target debt-to-equity ratio is 0.6. The cost of issuing new equity is 8%, while the cost of issuing debt is 5%. What is the real cost of the new assembly line if you factor in issuance costs?
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Mergers Acquisitions And Other Restructuring Activities
Authors: Donald DePamphilis
9th Edition
0128016094, 978-0128016091
