Pardon Me, Inc., recently issued new securities to finance a new TV show. The project...
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Pardon Me, Inc., recently issued new securities to finance a new TV show. The project cost $14.4 million, and the company paid $765,000 in flotation costs. In addition, the equity issued had a flotation cost of 7.4 percent of the amount raised, whereas the debt issued had a flotation cost of 3.4 percent of the amount raised. If the company issued new securities in the same proportion as its target capital structure, what is the companys target debt?equity ratio? PLEASE SHOW ME ALL WORK, I ONLY HAVE THREE QUESTIONS I CAN POST, please provide me with the correct answer. Thank You!
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