Question: Checkpoint 1 4 . 4 ) ( Calculating flotation costs ) The Faraway Moving Company is involved in a major plant expansion that involves the
Checkpoint Calculating flotation costs The Faraway Moving Company is involved in a major plant expansion that involves the expenditure of $ million in the coming year. The firm management plans to finance the expansion by retaining $ million in firm earnings and borrowing the remaining $ million. In return for helping sell the $ million in new debt, the firm's investment banker charges a fee of basis points where one basis point is percent If Faraway decides to adjust for these flotation costs by adding them to the initial outlay, what will the initial outlay for the project beThe flotation cost adjusted initial outlay is $Round to the nearest dollar.
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