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2 years ago

Total transaction costs, based on the assumptions provided, are expected to be:

1 answer:

8 0

Based on the costs of acquisition of Walmart by Amazon, the total transaction costs would come to B. $22,002.

<h3 /><h3>What are the total transaction costs?</h3>

Equity financing cost:

= 5.5% x 241,350.75

= $13,274.29

Debt financing cost:

= 1.5% x 241,350.75

= $3,260.26

Other transaction costs:

= $3,000

Target debt redemption premium:

= 70,242 x 3%

= $2,107.26

The total transaction costs are:

= 13,274.29 + 3,260.26 + 3,000 + 2,107.26

= $22,002

Find out more on acquisition costs at brainly.com/question/14300655

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A project should be chosen if the IRR is greater than the required return

The IRR is less than the required return so the project should be rejected.

To find the IRR using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

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