The Daily Brew Has a Debt-Equity Ratio of 0

question 36

Multiple Choice

The Daily Brew has a debt-equity ratio of 0.64.The firm is analyzing a new project which requires an initial cash outlay of $420,000 for equipment.The flotation cost is 9.6 percent for equity and 5.4 percent for debt.What is the initial cost of the project including the flotation costs?

• A)$302,400
• B)$368,924
• C)$456,328
• D)$456,700
• E)$583,333

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Definitions:

Sends Data

The process of transmitting information from one computer, device, or application to another.

Ethernet

A family of computer networking technologies commonly used in local area networks (LAN), metropolitan area networks (MAN), and wide area networks (WAN).

Standard Communications Protocol

A set of rules and standards that allow different systems and devices to communicate with each other effectively.

Client/Server Networks

A network architecture where computers (clients) request services or resources from other computers (servers).