Suppose your company needs to raise $15 million to construct a new shipping terminal. As CFO, you
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Suppose your company needs to raise $15 million to construct a new shipping terminal. As CFO, you plan to raise funds in the following manner: 60% of the funds will be raised by selling long term debt (bonds) 40% of the funds will be from excess cash flow generated by the business. For a debt issue, 2.5% of the amount raised will be kept by the Investment Banker, as gross spread. How much (total capital) will the company need to have available in order to build your shipping terminal?
Related Book For
Fundamentals of Corporate Finance
ISBN: 978-0077861629
8th Edition
Authors: Stephen A. Ross, Randolph W. Westerfield, Bradford D.Jordan
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