What is initial cost of project including flotation costs

Assignment Help Financial Management

Reference no: EM132069746

Yesteryear Productions is considering a project with an initial start-up cost of $960,000. The firm maintains a debt-equity ratio of 0.50 and has a flotation cost of debt of 6.8 percent and a flotation cost of equity of 11.4 percent. The firm has sufficient internally generated equity to cover the equity cost of this project. What is the initial cost of the project including the flotation costs?

Reference no: EM132069746

Questions Cloud

Define what will be the mike liability : Mike, Rebecca, and Noah agree to purchase and operate a property as a permanent investment. Mike and Rebecca each contribute $50,000. Noah contributes $30,000.

Discuss the use of psychographics in segmenting : Question 1: Discuss the use of psychographics in segmenting the market for dinner at an expensive restaurant.

What are assets-in-place-what are non-operating assets : What are assets-in-place? How can their value be estimated? What are non-operating assets? How can their value be estimated?

What is the equilibrium rate of return on a treasury bond : The real risk-free rate is 3.55%. inflation is expected to be 3 15% this year, and the maturity risk premium is zero Taking account of the cross-product term.

What is initial cost of project including flotation costs : Yesteryear Productions is considering project with an initial start-up cost of $960,000. What is the initial cost of the project including the flotation costs?

How much will pay in total taxes : If a Real Estate Professional files as head of household and has $100,000 in Active Income and $20,000 in Real Estate losses.

Michael porter generic competitive strategies : Assess New Balance's opportunities and threats; provide a plan for implementing at least two opportunity strategies and addressing

Michael porter generic competitive strategies : From your assessment of New Balance, identify and describe in detail at least one of Michael Porter's generic competitive strategies

How much did the seller have to pay in commission fees : A seller listed and sold her property for $325,000. She agreed to pay the listing broker a 7% commission. The listing broker offered a listing 40/60 selling.

User Account

All Pages