Business, 21.05.2020 21:09 Geo777

Ducky Float Corporation would like to start a new project: manufacturing voice-activated ducky floats for fancy hotel pools. This ducky float project will require $35,000 in the initial cost. The company is planning to raise this amount of money by selling new corporate bonds and new stocks. It has a target capital structure of 40 percent debt and 60 percent common stock. Flotation costs for issuing new debt is 4%, and for new common stock it is 7%. The weighted average flotation cost required for this project is: (Increase decimal places for any intermediate calculations, from the default 2 to 6 or higher. Only round your final answer.) (a) 7.2% (b) 6.6% (c) 5.8% (d) 5.4% (e) 5.2%

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Ducky Float Corporation would like to start a new project: manufacturing voice-activated ducky float...

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