Question: Question 17 A project to build a new tunnel connecting North and South London is proposed. The project budget is estimated at 600 million.

Question 17 A project to build a new tunnel connecting North and

Question 17 A project to build a new tunnel connecting North and South London is proposed. The project budget is estimated at 600 million. The UK government will contribute 200 million in grants to the project and the project sponsors will invest 50 million. The remainder of the project will be funded by bank loans. Calculate the debt:equity ratio of the project. a) 87.5:12.5 b) 66.67:33.33 c) 10:90 d) 12.5:87.5 e) 90:10

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