The Lingo Co

question 195

Multiple Choice

The Lingo Co. has a debt-equity ratio of.60. The firm is analyzing a new project which requires an initial cash outlay of $450,000 for new equipment. The flotation cost for new equity is 10 % and for debt 5 %. What is the initial cost of the project including the flotation costs?

• A) $413,438
• B) $483,750
• C) $486,486
• D) $486,563
• E) $489,796

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Definitions:

Self-report Inventories

Psychological tests in which individuals provide subjective evaluations or reports of their own behavior, feelings, or attitudes.

Criticisms

The act of expressing disapproval and objections about something, often involving the analysis and judgment of faults or mistakes.

Trait Approach

A perspective in personality psychology that focuses on the identification and measurement of specific personality traits in order to predict behavior and outcomes.