Answered

Explore Westonci.ca, the premier Q&A site that helps you find precise answers to your questions, no matter the topic. Connect with professionals ready to provide precise answers to your questions on our comprehensive Q&A platform. Explore comprehensive solutions to your questions from knowledgeable professionals across various fields on our platform.

A firm has a target debt-equity ratio of .5, but it plans to finance a new project with all debt. What debt-equity ratio should be used when calculating the project's flotation costs

Sagot :

abiolataiwo2015

The  debt-equity ratio that should be used when calculating the project's flotation costs is: 0.5.

Debt-equity ratio

Since the firm has  target debt-equity ratio of .0.5 which means that the debt-equity ratio that should be used when calculating the project's flotation costs should be 0.5.

Debt-equity ratio Formula is:

Debt-equity ratio=Total debt/Total shareholders' equity

Therefore the firm should used 0.5 to calculate the project's flotation costs.

Learn more about Debt-equity ratio here:https://brainly.com/question/17233079

#SPJ1

We appreciate your visit. Hopefully, the answers you found were beneficial. Don't hesitate to come back for more information. We appreciate your time. Please revisit us for more reliable answers to any questions you may have. We're dedicated to helping you find the answers you need at Westonci.ca. Don't hesitate to return for more.