You Are Evaluating a Project Which Requires $230,000 in External

question 43

Multiple Choice

You are evaluating a project which requires $230,000 in external financing.The flotation cost of equity is 11.6 percent and the flotation cost of debt is 5.4 percent.What is the initial cost of the project including the flotation costs if you maintain a debt-equity ratio of 0.45?

• A)$248,494
• B)$249,021
• C)$254,638
• D)$255,551
• E)$255,646

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Definitions:

Information Systems

Integrated sets of components for collecting, storing, and processing data, and for delivering information, knowledge, and digital products.

Information Technology

The employment of computers, storage systems, networking components, and additional physical devices, infrastructure, and methodologies to generate, process, secure, store, and share various kinds of digital data.

Right-To-Repair Legislation

Laws designed to require manufacturers to provide consumers and independent repair shops access to repair information, tools, and parts for their products.

Right Information

Accurate and relevant data that is accessible at the correct time for decision-making or problem-solving.