Suppose your company needs $26 million to build a new assembly line. your target debt-equity ratio is .45. the flotation cost for new equity is 9.9 percent, but the floatation cost for debt is only 4.3 percent. what is the true cost of building the new assembly line after taking flotation costs into account?

a. $27.82 million
b. $28.31 million
c. $22.07 million
d. $26.12 million
e. $28.12 million

What is an example of a good stock to buy in a recession? a) cyclical stock b) defensive stock c) income stock d) bond

Abank has $132,000 in excess reserves and the required reserve ratio is 11 percent. this means the bank could have in checkable deposit liabilities and in (total) reserves.

The east asiatic company (eac), a danish company with subsidiaries throughout asia, has been funding its bangkok subsidiary primarily with u. s. dollar debt because of the cost and availability of dollar capital as opposed to thai baht-denominated (b) debt. the treasurer of eac-thailand is considering a 1-year bank loan for $247,000.the current spot rate is b32.03 /$, and the dollar-based interest is 6.78% for the 1-year period. 1-year loans are 12.04% in baht. a. assuming expected inflation rates of 4.3 % and 1.24% in thailand and the united states, respectively, for the coming year, according to purchase power parity, what would the effective cost of funds be in thai baht terms? b. if eac's foreign exchange advisers believe strongly that the thai government wants to push the value of the baht down against the dollar by5% over the coming year (to promote its export competitiveness in dollar markets), what might the effective cost of funds end up being in baht terms? c. if eac could borrow thai baht at 13% per annum, would this be cheaper than either part (a) or part (b) above?