Answer:
$321,600
Explanation:
debt equity ratio = debt / equity
since the debt to equity is 0.8, that means that for every $ invested from equity, $0.80 will be borrowed. If the new project requires an initial cash outlay of $300,000:
- then $300,000 / $1.80 = $166,667 will be new equity
- and $133,333 will be new debt
total cost of initial outlay including flotation costs = ($166,667 x 1.09) + ($133,333 x 1.0495) = $181,667 + $139,933 = $321,600
flotation costs include all the costs associated with issuing new stocks or taking new debt.
Answer:
Correct answer is FALSE
Explanation:
FOB Destination transfers ownership of the goods to the buyer after the goods reached to its destination (either in the buyer’s warehouse or any place stated in the contract to be delivered). Thus, goods in-transit under FOB destination still belongs to the seller and not to the buyer yet. Moreover, it should not be included to buyer’s inventory because the title of ownership of the said goods still belongs to the seller at the time of transit.
When negative externalities exist, an unregulated market will produce too much of the good and the price will be low when compared to the efficient level of production.
<h3>What is a negative externality?</h3>
This is type of externality that occurs when the production or the consumption of a good brings about extra costs for another party.
When this is the case, then it may result in one party having benefits and the other party suffering for the benefits.
Read more on externalities here: brainly.com/question/4326646
I think it's c. I hope this helps.
