The Daily Brew Has a Debt-Equity Ratio of

Multiple Choice

The Daily Brew has a debt-equity ratio of .57. The firm is analyzing a new project that requires an initial cash outlay of $260,000 for equipment. The flotation cost is 9.1 percent for equity and 4.4 percent for debt. What is the initial cost of the project including the flotation costs?

A) $302,400
B) $318,924
C) $280,758
D) $256,700
E) $333,333