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Business, 13.05.2020 03:57 nataliajaquez02

Cal Poly Corporation would like to start a new project: building a high-tech rose float for the next regional contest. This rose float project will require $53,000 in the initial cost. The company is planning to raise this amount of money by selling new corporate bonds and new stocks. It has a target capital structure of 60 percent common stock, and 40 percent debt. Flotation costs for issuing new common stock is 7%, and for new debt it is 4%.

The true required initial investment that Cal Poly Corporation should use in its valuation of the rose float project is .

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