试题与答案

Cullen Casket Company is considering a pro

题型:单项选择题

题目:

Cullen Casket Company is considering a project that requires a $175000 cash outlay and is expected to produce cash flows of $65000 per year for the next four years. Cullen’s tax rate is 40 percent and the before-tax cost of debt is 9 percent. The current share price for Cullen stock is $32 per share and the expected dividend next year is $1.50 per share. Cullen’s expected growth rate is 5 percent. Cullen finances the project with 70 percent newly issued equity and 30 percent debt, and the flotation costs for equity are 4.5 percent. What is the dollar amount of the flotation costs attributable to the project, and that is the NPV for the project, assuming that flotation costs are accounted for correctly Dollar amount of floatation costs NPV of project()①A. $5513 $30510 ②B. $5513 $32872 ③C. $7875 $32872

A. ①

B. ②

C. ③

答案:

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参考答案:B

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