When Calculating the flOtation Cost of a Project, You Should

question 288

Multiple Choice

When calculating the flotation cost of a project, you should use:

• A) The current pre-tax debt to equity weights.
• B) The weights based on the actual intended sources of capital for the project.
• C) The target capital structure percentages.
• D) The weighted average of the market values of the current capital structure.
• E) The weighted average of the book values of the current capital structure.