Korda International Inc. recently issued new securities (common shares and bonds) to finance a new project with a cost $16 million. The equity issued had a flotation cost of 8%, while the debt issued had a flotation cost of 2.5%. Total flotation cost of this new security issue was $1.2 million. If Korda International Inc. issued new securities in the same proportion as its target capital structure, what is the company's target debt to equity ratio?

Answer rating: 100% (QA)

Answer Heres how to calculate Korda International Incs target debt to equity ratio based on the information provided 1 Define variables Total project ... View the full answer