The flotation cost is 12 percent for equity and 6 percent, Financial Management

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The flotation cost is 12 percent for equity and 6 percent

Peterson Instruments has a debt-to-equity ratio of 0.5, without any preferred stock outstanding. The firm is analyzing a new project which requires an initial cash outlay of $630,000 for equipment. The flotation cost is 12 percent for equity and 6 percent for debt. What is the initial cost of the project including the flotation costs?

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Financial Management: The flotation cost is 12 percent for equity and 6 percent

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Financial Management: The flotation cost is 12 percent for equity and 6 percent

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