Calculate the initial cost of the project

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Problem 1: The Carnation Daily has a debt-equity ratio of 0.58. The firm is analyzing a new project that requires an initial cash outlay of RM300,000 for equipment. The flotation cost is 9 percent for equity and 4.4 percent for debt. Calculate the initial cost of the project including the flotation costs.

Reference no: EM132915677

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