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4. [15 pts] A company has a debt-equity ratio of 1/3. When raising capital, the company estimates the cost of debt capital and equity capital,

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4. [15 pts] A company has a debt-equity ratio of 1/3. When raising capital, the company estimates the cost of debt capital and equity capital, and the flotation costs and are shown in the following table: The company's tax rate is 23 percent. a. What is the average flotation cost? b. If the company is raising $100 million capital consisting of debt and equity, how much money should it raise? c. What is the weighted average cost of capital (WACC)? 4. [15 pts] A company has a debt-equity ratio of 1/3. When raising capital, the company estimates the cost of debt capital and equity capital, and the flotation costs and are shown in the following table: The company's tax rate is 23 percent. a. What is the average flotation cost? b. If the company is raising $100 million capital consisting of debt and equity, how much money should it raise? c. What is the weighted average cost of capital (WACC)

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