Chris’ Chai Tea Brewers has a debt-equity ratio of 0.74. The firm is analyzing a new project, which requires an initial cash outlay of $343,500 for equipment. The flotation cost is 8.6 percent for equity and 4.4 percent for debt. What is the initial cost of the project including the flotation costs?
Chris’ Chai Tea Brewers has a debt-equity ratio of 0.74. The firm is analyzing a new project, which requires an
initial cash outlay of $343,500 for equipment. The flotation cost is 8.6 percent for equity and 4.4 percent for debt. What is the initial cost of the project including the flotation costs?
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