Calculate the total funds required to proceed with project

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Reference no: EM133097002

Question - The firm's target D/E ratio is 1.0. The flotation cost of equity is 6% and the flotation cost for debt is 2%. If the capital project has a cost of $2 million, calculate the total funds required to proceed with the project.

a. $2,083,333.

b. $2,107,357.

c. $2,000,000.

d. $2,039,133.

e. $2,103,942.

Reference no: EM133097002

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