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Chauhan Corporation has a debt - equity ratio of . 8 0 . The company is considering a new plant that will cost $ 1
Chauhan Corporation has a debtequity ratio of The company is considering a new plant that will cost $ million to build. When the company issues new equity, it incurs a flotation cost of percent. The flotation cost on new debt is percent.
a
What is the initial cost of the plant if the company raises all equity externally? Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole number, eg
b What is the initial cost of the plant if the company typically uses percent retained earnings? Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole number, eg
c What is the initial cost of the plant if the company typically uses percent retained earnings? Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole number, eg
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