Craddock Company needs to raise $ million to start a new project and will raise the money by selling new bonds. The company will generate no internal equity for the foreseeable future. The company has a target capital structure of common stock, preferred stock, and debt. Flotation costs for issuing new common stock are ; for new preferred stock, ; and for new debt,
What is the true initial cost figure the company should use when evaluating its project? Enter the answer in dollars. Do not round intermediate calculations. Round the final answer to decimal places. Omit $ sign in your response.
Initial cost
$
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
