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15. Assume a leveraged firm plans to raise new capital to finance a project . To properly account for flotation costs the firm should A.
15. Assume a leveraged firm plans to raise new capital to finance a project . To properly account for flotation costs the firm should
A. Add the percentage of the flotation cost to the WACC when discounting the cash flows
B. Increase the target weights of both debt and equity to account for flotation percentage
C. Subtract the pretax flotation cost from the projects NPV
D. Five the smooth of project capital needed by 1
E. Deduct the amount of the flotation costs from the cash flows from year 1 of the project
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