FINANCE-The firm is analyzing a new project which requires an initial cash outlay
QUESTION
Harmon, Inc. has a debt-equity ratio of .80. The firm is analyzing a new project which requires an initial cash outlay of $300,000 for new equipment. The flotation cost for new equity is 9 percent and for debt 4.5 percent. What is the initial cost of the project including the flotation costs?$317,125$320,856$321,000$322,581$325,912
ANSWER:
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