Initial cost of project including flotation costs, Finance Basics

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Initial cost of project including flotation costs

Target Media Inc. has a debt-equity ratio of 0.64. The firm is analyzing a new project which requires an initial cash outlay of $420,000 for equipment. The flotation cost is 9.6 percent for equity and 5.4 percent for debt. What is the initial cost of the project including the flotation costs?

A. $302,400

B. $368,924

C. $456,328

D. $456,700

E. $583,333

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Finance Basics: Initial cost of project including flotation costs

Reference No:- TGS042435

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

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Q : Effective duration for bond with current market value

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Request for Solution File

Ask an Expert for Answer!!

Finance Basics: Initial cost of project including flotation costs

Reference No:- TGS042435

Recent Questions Asked Finance Basics

Q : Calculate the tax consequences

Q : Effective duration for bond with current market value

Q : Analyst understanding of bond pricing

Q : Use demand and supply diagram to describe case

Q : Initial cost of project including flotation costs

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Q : Estimating the company target debt-equity ratio

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Q : Why compensation plan differ at two firms

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