What is the company target debt-equity ratio

Reference no: EM13287630

Fa Ma's Company recently issued new securities to finance a new TV show. Theproject cost RM1.4 million and the company paid RM105,000 in flotation costs. Inaddition, the equity issued had a flotation cost of 10% of the amount raised, whereasthe debt issued had a flotation cost of 3% of the amount raised. If Fa Ma issued newsecurities in the same proportion as its target capital structure, what is the company's target debt-equity ratio?

Reference no: EM13287630

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