Return to question Judson Inc. recently issued new securities to finance a new TV show. The project cost $14.4 million, and the company paid $765,000 in flotation costs. In addition, the equity issued had a flotation cost of 7.4% of the amount raised, whereas the debt issued had a flotation cost of 3.4% of the amount raised. If Judson 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. Round the final answer to 4 decimal places.) Debt-Equity ratio 1.0912
Return to question Judson Inc. recently issued new securities to finance a new TV show. The project cost $14.4 million, and the company paid $765,000 in flotation costs. In addition, the equity issued had a flotation cost of 7.4% of the amount raised, whereas the debt issued had a flotation cost of 3.4% of the amount raised. If Judson 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. Round the final answer to 4 decimal places.) Debt-Equity ratio 1.0912
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
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Judson Inc. recently issued new securities to finance a new TV show. The project cost $14.4 million, and the company paid $765,000
in flotation costs. In addition, the equity issued had a flotation cost of 7.4% of the amount raised, whereas the debt issued had a
flotation cost of 3.4% of the amount raised. If Judson 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. Round the final answer to 4 decimal places.)
Debt-Equity ratio
Return to question
1.0912 x
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