Being Human, Inc., recently issued new securities to finance a new TV show. The project cost $13.9 million, and the company paid $715,000 in flotation costs. In addition, the equity issued had a flotation cost of 6.9 percent of the amount raised, whereas the debt issued had a flotation cost of 2.9 percent of the amount raised. If the company issued new securities in the same proportion as its target capital structure, what is the company's target debt-equity ratio? (Do not round intermediate calculations and round your answer to 4 decimal places, e.g., .1616.) Debt-equity ratio
Being Human, Inc., recently issued new securities to finance a new TV show. The project cost $13.9 million, and the company paid $715,000 in flotation costs. In addition, the equity issued had a flotation cost of 6.9 percent of the amount raised, whereas the debt issued had a flotation cost of 2.9 percent of the amount raised. If the company issued new securities in the same proportion as its target capital structure, what is the company's target debt-equity ratio? (Do not round intermediate calculations and round your answer to 4 decimal places, e.g., .1616.) Debt-equity ratio
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Transcribed Image Text:Being Human, Inc., recently issued new securities to finance a new TV show. The project
cost $13.9 million, and the company paid $715,000 in flotation costs. In addition, the
equity issued had a flotation cost of 6.9 percent of the amount raised, whereas the debt
issued had a flotation cost of 2.9 percent of the amount raised. If the company issued
new securities in the same proportion as its target capital structure, what is the
company's target debt-equity ratio? (Do not round intermediate calculations and round
your answer to 4 decimal places, e.g., 1616.)
Debt-equity ratio
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