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Black Tiger Homebuilders is considering investing in a one-year project that requires an initial investment of $475,000. To do so, it will have to issue
Black Tiger Homebuilders is considering investing in a one-year project that requires an initial investment of $475,000. To do so, it will have to issue new common stock and will incur a flotation cost of 2.00%. At the end of the year, the project is expected to produce a cash inflow of $595,000. The rate of return that Black Tiger expects to earn on its project (net of its flotation costs) is?
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