Question: Murtagh Co. is operating at its target capital structure with market values of $110 million in equity and $175 million in debt outstanding. Murtagh

Murtagh Co. is operating at its target capital structure with market values

Murtagh Co. is operating at its target capital structure with market values of $110 million in equity and $175 million in debt outstanding. Murtagh Co. plans to finance a new $32 million project using the same relative weights of debt and equity. Ignoring flotation costs, how much new debt must be issued to fund the project?

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