Yesteryear Productions Is Considering a Project with an Initial Start

question 26

Multiple Choice

Yesteryear Productions is considering a project with an initial start up cost of $960,000.The firm maintains a debt-equity ratio of 0.50 and has a flotation cost of debt of 6.8 percent and a flotation cost of equity of 11.4 percent.The firm has sufficient internally generated equity to cover the equity cost of this project.What is the initial cost of the project including the flotation costs?

• A)$979,417
• B)$982,265
• C)$992,386
• D)$1,038,513
• E)$1,065,089

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Definitions:

False Light

A privacy tort involving a misleading portrayal of an individual that is highly offensive or embarrassing, even if not defamatory.

Drug and Alcohol Testing

The process of checking an individual's body fluids or breath for the presence of drugs or alcohol, commonly used in employment and legal settings.

NLRB

National Labor Relations Board, a US federal agency that enforces US labor law in relation to collective bargaining and unfair labor practices.

Collective Bargaining

The process in which working people, through their unions, negotiate contracts with their employers to determine their terms of employment.