A firm has a target debt-equity ratio of .5, but it plans to finance a new project with all debt. What debt-equity ratio should be used when calculating the project's flotation costs

Answer;

Future expectation of prices

Explanation;Demand refers to the quantity of a good or service that consumers and businesses are willing and able to buy at a given price in a given time period. Demand is determined by various factors such as price of the goods and other non-price determinants.Non-price determinants include; the income of the buyers or consumers, tastes and preferences of consumers, prices of related goods and services known as complementary goods and the future expectations of prices among other factors.