Turtle Co. has a total debt ratio of 0.78. The company is considering building a new plant for $75 million. When the company issues new equity, it incurs a flotation cost of 9%. The flotation cost on new debt is 4%. Calculate the cost of the plant, including flotation costs. (Round to 2 decimals and enter the full value,e.g. 5 million must be entered as 5,000,000)

Turtle Co. has a total debt ratio of 0.78. The company is considering building a new plant for $75 million. When the company issues new equity, it incurs a flotation cost of 9%. The flotation cost on new debt is 4%. Calculate the cost of the plant, including flotation costs. (Round to 2 decimals and enter the full value,e.g. 5 million must be entered as 5,000,000)

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter9: Capital Budgeting And Cash Flow Analysis

Section: Chapter Questions

Problem 11P

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