You Are Considering a Project Which Requires $136,000 in External

question 223

Multiple Choice

You are considering a project which requires $136,000 in external financing. The flotation cost of equity is 11 % and the cost of debt is 4.5 %. You wish to maintain a debt-equity ratio of.45. What is the initial cost of the project including the flotation costs?

• A) $138,009
• B) $143,367
• C) $149,422
• D) $154,004
• E) $155,283

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Definitions:

Statistics

The art and science of collecting, analyzing, presenting, and interpreting data.

Largest Data Values

Refers to the highest or maximum values in a given dataset.

Smallest Data Values

The minimum value within a set of numbers, indicating the lowest point in a data set.

Coefficient of Variation

A statistical measure of the dispersion of data points in a data series around the mean, expressed as a percentage of the mean.