Please answer: ABC Corp. has a debt-equity ratio of 2. Newly issued bonds by the company must have a yield to maturity of 8%, whilst newly issued...

Please answer:

ABC Corp. has a debt-equity ratio of 2. Newly issued bonds by the company must have a yield to maturity of 8%, whilst newly issued equity will yield 18%. With newly issued debt and equity, the investment dealer's spreads will be 5% and 8%, respectively. The company's marginal tax rate is 38%. If ABC Corp. wants to raise money for a $1 million project, how much money must it raise in total.