The issue about how do I calculate the cost of supporting you?
Doverfield company asking for $ 56 million to start a new project Will raise money by selling new bonds. The company 65% common stock, preferred capital structure goal of 5% and 30% of the debt and Can. Support costs for issuing new ordinary shares of 10%, The new preferred stock is 10%, 8% for the new debt. What is the Kalahari and its projects should be used when evaluating Initial cost is a real person?
$ 56,000,000 X 0.65 = 36,400,000 common stock for $ 56 million X 0.10 = 3,640,000 x 0.30 = 16.8 million cost of supporting debt X 0.08 = 1.344 million support costs $ 56,000,000 X 0.10 X 0.05 = 2.8 million preferred shares = 280.000 flotation costs to True, the initial cost = $ 56,000,000 + support costs
What will be the capital raising instrument in 2010?