Business, 04.04.2020 14:10 villarrealc1987
When a firm has flotation costs equal to 8.3 percent of the funding need, project analysts should: Multiple Choice increase the project's discount rate to offset these expenses by multiplying the company's WACC by 1.083. increase the initial project cost by multiplying that cost by 1.083. increase the initial project cost by dividing that cost by (1 − .083). add 8.3 percent to the company's firm's WACC to determine the discount rate for the project. increase the project's discount rate to offset these expenses by dividing the company's WACC by (1 − .083).
Answers: 1
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When a firm has flotation costs equal to 8.3 percent of the funding need, project analysts should: M...
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