CORPORATE FINANCE- ACCESS >C<
CORPORATE FINANCE- ACCESS >C<
12th Edition
ISBN: 9781307447248
Author: Ross
Publisher: MCG/CREATE
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Chapter 13, Problem 18QAP
Summary Introduction

Adequate information:

Project cost CP = $30,000,000

Flotation costs CF = $1,900,000

Equity flotation cost fe = 7%

Debt flotation cost fd = 3%

To compute: Debt-equity ratio for the company M.

Introduction: The Debt-equity ratio refers to the evaluation of the proportion of business capital financed with equity capital and debt.

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