XYZ compa securities to France a new TV show. The project cost 500000and debt-to-equity ratio is...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
XYZ compa securities to France a new TV show. The project cost 500000and debt-to-equity ratio is 0.6 the flotation cost is 0.06for the equity and the flotation cost for debt is 0.03 if you want to raise money from equity and debt, what is the total flotation cost for the firm? what is the total amount to be raised? if you want to raise money from equity and debt, what is the total flotation cost for the firm? what is the total amount to be raised? XYZ compa securities to France a new TV show. The project cost 500000and debt-to-equity ratio is 0.6 the flotation cost is 0.06for the equity and the flotation cost for debt is 0.03 if you want to raise money from equity and debt, what is the total flotation cost for the firm? what is the total amount to be raised? if you want to raise money from equity and debt, what is the total flotation cost for the firm? what is the total amount to be raised?
Expert Answer:
Answer rating: 100% (QA)
Debt and Equity Amounts Debt Debttoequity ratio 06so Debt Equity 06 Let Equity xThenDebt 06x Equity Equity x from the equation above Total Project Cost and Flotation Costs Total project cost 500000 Flotation cost for equity 006 x Flotation cost for debt 003 06x 0018x Total Flotation Cost Add the flotation costs for equity and debt006x 0018x 0078x Total Amount to Be Raised The total project cost needs to be covered by debt and equityincluding flotation costs 500000 06x x 0078x Combine like terms1778x 500000 Solve for x equityx 28145614 Equity Amount Equity x ... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0132162302
1st edition
Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Posted Date:
Students also viewed these accounting questions
-
The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
-
Last Sale Net Bid Ask Open Int Puts Last Sale Net bid Ask Vol Open Int 16Aug 155.00(1619H155-E) 6.45 0.75 6.95 7.25 9 16Aug 155.00(1619T155-E) 1.18 (0.75) 1.17 1.25 61 4505 16Aug 166.00(1619H160-E)...
-
An analyst expects that 20% of all publicly traded companies will experience a decline in earnings next year. The analyst has developed a ratio to help forecast this decline. If the company is headed...
-
The financial statement for urban outfitters for the fiscal year ending Jan 2012 can be found on google. Refer to the financial statements of Urban Outfitters given in Appendix C at the end of this...
-
Our discussion of microlensing assumed a single star and a circularly symmetric potential about it. This is usually a good approximation for stars in our galaxy. However, when the star is in another...
-
In February 2007, The Elliot Group, Inc., an Illinois real estate developer, made a deal with the Village of Arlington Heights to develop property in that village. Arlington Market, LLC, was...
-
The Zinn Company plans to issue $10,000,000 of 10-year bonds in June to help finance a new research and development laboratory. It is now November, and the current cost of debt to the high-risk...
-
decribe the health sttsus of unit members (if any of the family describe below)Mother (29yo) and Father (32yo) 2 children (1 elementary, 1 high school) Origin: Mohawk (from Kahnawake) Address: 295,...
-
From the information in BE5.4, prepare the journal entries to record these transactions on McLeena Companys books under a perpetual inventory system. Data From BE 5.4 Prepare the journal entries to...
-
Firms expect each of their products to: cover the direct costs of production and help contribute to the regular fixed costs. cover the direct costs of production, but not contribute to the fixed...
-
If a pound of tea has twice as much caffeine as a pound of coffee, and if a pound of teas makes 160 cups and a pound of coffee makes 40 cups and a 12oz cola has 1/4 the caffee as a cup of coffee: How...
-
What is the 'uncertainty paradox'? When does it arise? Can you suggest a way for it to be avoided? UK law and provide references?
-
Nina can ride her bike 63, 360 feet in 3, 400 seconds, and Sophia can ride her bike 10 miles in 1 hour. What is Nina's rate in miles per hour f there are 5, 280 feet in a mile?
-
I need to Insert a try statement before prompting the user to Enter Miles Driven, then open a { and close } after the milesPerGallonCalculation: 2) Insert a catch statement after the try } closing....
-
provide UML before writing the code 2.provide the datatype class that is about SP23Product The class SP2023_SP23Product_yourLastName only hold the int array that hold the numbers of product units...
-
The beam shown in Figure 1 supports a distributed load of 20 kN/m. A is a pin support, and B is a roller support. Given E = 200,000 MPa and I = 175 x 106 mm4. Using the principle of virtual work...
-
U.S. households have become smaller over the years. The following table from the 2010 GSS contains information on the number of people currently aged 18 years or older living in a respondent's...
-
The following information is available for the first three years of operations for the Shooting Star Corporation: On January 2, 2013, the firm acquired heavy equipment costing $ 200,000 in a cash...
-
Terrell Toy Company uses an acceptable tax method that provided a $ 10,000 tax deduction for the current year. GAAP and taxable income before considering this tax deduction are equal to $ 245,000 (...
-
Compute cash flows from operating activities for Edwards Company under the indirect reporting format. Edwards Company provided you with the following information for the current year. Accounts...
-
To explore how student project groups develop through various stages. INSTRUCTIONS 1. Think about the last time you were assigned to a student group to complete a course-related project. 2. Next,...
-
To explore which conflict styles students would use in a variety of workplace scenarios. INSTRUCTIONS 1. Read each of the following workplace scenarios. 2. Next, choose the conflict style being used...
-
The chapter included a paragraph on restaurant managers and staff communication about COVID-19 policies and practices. What would constitute transparency in the downward and upward directions? Data...
Study smarter with the SolutionInn App