Suppose ALK Co. needs $13.8 million to build a new assembly line. The target debt-equity ratio is .48. The flotation cost for new equity is 9.6 percent, but the floatation cost for debt is only 5.1 percent. What is the true cost of building the new assembly line after taking flotation costs into account

The true cost of building the new assembly line after taking flotation costs into account is $15,022,949

Explanation:

In order to calculate the true cost of building the new assembly line after taking flotation costs into account we would have to calculate first the Weighted average flotation cost for debt and equity  as follows:

Weighted average flotation cost for debt and equity  = 0.051*(0.48/1.48) + 0.096*(1/1.48)

= 0.0814054 or 8.14054%

Therefore, Cost of building the new assembly line including flotation costs  =13,800,000/(1-0.0814054)

=$15,022,949

The true cost of building the new assembly line after taking flotation costs into account is $15,022,949

ans.

heterothermic organisms include those organisms that can switch between homeothermic (having body temperature higher than environment) and poikilothermic (having variation in internal body temperature) strategies.

some migratory birds show heterothermy as they decrease their metabolic rate during cold nights to keep their body temperature low. drop in metabolic rate allows increase in production efficiency of birds that reduces the internal body temperature to make it equal to external cold temperature during cold nights.

thus, the correct answer is 'birds allow their temperature drop in order to increase their production efficiency.'

answer; how many employees will be needed for jobs in the coming period;