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A company maintains debt/equity ratio of 0.6. The flotation cost of equity is 12% and flotation cost of debt it is 6%. The firm

A company maintains debt/equity ratio of 0.6. The flotation cost of equity is 12% and flotation cost of debt it is 6%. The firm is considering a new project which will require $5 million in external funding. What is the initial cost of the project including the flotation costs?

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