Jungle Joe’s has a debt-equity ratio of 1.30. The firm has a flotation cost of
debt of 7.9 percent? and a flotation cost for equity of 12.84 percent. How much does the firm need to borrow to fully fund a project that has an initial cost of $70.5 million?
Choices are (all in millions) $78.375, $80.323, $76.121, and $81.070.
Thanks!
debt of 7.9 percent? and a flotation cost for equity of 12.84 percent. How much does the firm need to borrow to fully fund a project that has an initial cost of $70.5 million?
Choices are (all in millions) $78.375, $80.323, $76.121, and $81.070.
Thanks!