Multiple Choice
The Daily Brew 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
Correct Answer:
Verified
Correct Answer:
Verified
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