Question
CCC Inc. has a target capital structure of 60 percent equity and 40 percent debt. The flotation costs for equity issues are 8 percent of
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CCC Inc. has a target capital structure of 60 percent equity and 40 percent debt. The flotation costs for equity issues are 8 percent of the amount raised; the flotation costs for debt issues are 3 percent of the amount raised. If CCC needs $112 million for a new manufacturing facility, what is the true costs including flotation costs?
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