Answered

Westonci.ca is the premier destination for reliable answers to your questions, provided by a community of experts. Discover detailed solutions to your questions from a wide network of experts on our comprehensive Q&A platform. Get detailed and accurate answers to your questions from a dedicated community of experts on our 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

Your visit means a lot to us. Don't hesitate to return for more reliable answers to any questions you may have. Thanks for using our service. We're always here to provide accurate and up-to-date answers to all your queries. Keep exploring Westonci.ca for more insightful answers to your questions. We're here to help.