Answered

At Westonci.ca, we provide clear, reliable answers to all your questions. Join our vibrant community and get the solutions you need. Join our platform to connect with experts ready to provide precise answers to your questions in different areas. Discover detailed answers to your questions from a wide network of experts on our comprehensive Q&A 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 time. Please revisit us for more reliable answers to any questions you may have. We appreciate your time. Please come back anytime for the latest information and answers to your questions. Westonci.ca is committed to providing accurate answers. Come back soon for more trustworthy information.