Managerial Finance

Southern Alliance Company needs to raise $25 million to start a new project and will raise the money by selling new bonds. The company will generate no internal equity for the foreseeable future. The company has a target capital structure of 55 percent co...

Goodbye, Inc., recently issued new securities to finance a new TV show. The project cost $2.9 million, and the company paid $212,000 in flotation costs. In addition, the equity issued had a flotation cost of 7.5 percent of the amount raised, whereas the d...