You Are Considering a Project Which Requires $687,000 in External

question 75

Multiple Choice

You are considering a project which requires $687,000 in external financing. The flotation cost of equity is 10 % and the flotation cost of debt is 6 %. You wish to maintain a debt-equity ratio of.55. What is the initial cost of the project including the flotation costs?

• A) $642,113
• B) $656,008
• C) $711,209
• D) $751,482
• E) $818,406

---

Definitions:

Hostility

An emotion expressed as anger, aggression, or resentment towards others, often resulting from frustration or perceived threats.

Anger

A strong feeling of displeasure or hostility, typically arising from a perceived wrong or threat.

Heart Attack

A medical condition characterized by the death of heart muscle due to the sudden blockage of a coronary artery.

Having A TV

The state or condition of owning and likely using a television set for entertainment, information, or education.