Zinger’s needs $242,000 for expansion. The firm has a target capital structure of 45 percent debt and 55 percent external equity. The flotation cost of debt is 5.2 percent compared to 8.5 percent for equity. What amount does the firm need to raise to fund the expansion? Multiple Choice

Zinger’s needs $242,000 for expansion. The firm has a target capital structure of 45 percent debt and 55 percent external equity. The flotation cost of debt is 5.2 percent compared to 8.5 percent for equity. What amount does the firm need to raise to fund the expansion? Multiple Choice

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter12: The Cost Of Capital

Section: Chapter Questions

Problem 7P

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$260,257.03

$301,773.00

$233,333.33

$286,111.75

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