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A project requires an initial investment or $9 million. the target D/E ratio is 0.60. Flotation costs...

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Finance

Aproject requires an initial investment or $9 million. the targetD/E ratio is 0.60. Flotation costs for equity are 7% and flotationcosts for debt are 3%. whag is the true cost (in dollars) of theproject when you consider the flotation costs?

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Transcribed Image Text

Aproject requires an initial investment or $9 million. the targetD/E ratio is 0.60. Flotation costs for equity are 7% and flotationcosts for debt are 3%. whag is the true cost (in dollars) of theproject when you consider the flotation costs?

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