Homework answers / question archive / A CFO is analyzing the costs of raising $25,000,000

A CFO is analyzing the costs of raising $25,000,000

Finance

Share With

A CFO is analyzing the costs of raising $25,000,000. She knows the flotation costs of equity are 8% while the floatation costs of debt are 2%. The capital structure of her company is 60% debt and 40% equity. How much more in capital does she need to raise above the $25,000,000 when factoring in the appropriate mix of floatation costs?