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:

Chlorobenzene

A colorless organic compound consisting of a benzene ring substituted with a chlorine atom.

M/Z 70

A designation in mass spectrometry indicating a particle with a mass-to-charge ratio of 70, often associated with specific fragments in the spectra.

M/Z 127

The mass-to-charge ratio of an ion with a mass of 127 atomic mass units and a charge of one.

M/Z Fragments

In mass spectrometry, these fragments are pieces of a molecule resulting from ionization and fragmentation, described by their mass-to-charge ratio.