The debt-equity ratio that should be used when calculating the project's flotation costs is: 0.5.
Debt-equity ratio
Since the firm has target debt-equity ratio of .0.5 which means that the debt-equity ratio that should be used when calculating the project's flotation costs should be 0.5.
Debt-equity ratio Formula is:
Debt-equity ratio=Total debt/Total shareholders' equity
Therefore the firm should used 0.5 to calculate the project's flotation costs.
Learn more about Debt-equity ratio here:https://brainly.com/question/17233079
#SPJ1
