A ﬁrm needs to raise $165 million for a project. If external ﬁnancing is used, the ﬁrm faces ﬂotation costs of 8% for equity and 2.5% for debt. If the project is to be ﬁnanced 60% with equity and 40%
With debt, how much cash must the ﬁrm raise in order to ﬁnance the project?

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The Answer of A ﬁrm needs to raise $165 million for a project. If external ﬁnancing is used, the ﬁrm faces ﬂotation costs of 8% for equity and 2.5% for debt. If the project is to be ﬁnanced 60% with equity and 40%
With debt, how much cash must the ﬁrm raise in order to ﬁnance the project?

A ﬁRm Needs to Raise $165 Million for a Project