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22 22 of 25 Dorval Inc. recently issued new securities to finance an expansion project. The new equipment cost $5 million and the company paid
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22 of 25 Dorval Inc. recently issued new securities to finance an expansion project. The new equipment cost $5 million and the company paid a total of $500,000 in flotation costs Investment dealers charge 15 percent to float new equity while the flotation rate to issue new debt is 4 percent. If Dorval Inc issued the new secunities in the same proportion as its target capital structure, what is the company's target debuequity rata? O a 3.58 Ob 3.54 c234 d. 2.11 Oo none of the above unsure Step by Step Solution
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