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Chauhan Corporation has a debt-equity ratio of .85 . The company is considering a new plant that will cost $111 million to build. When the

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Chauhan Corporation has a debt-equity ratio of .85 . The company is considering a new plant that will cost $111 million to build. When the company issues new equity, it incurs a flotation cost of 8.1 percent. The fiotation cost on new debt is 3.6 percent. a. What is the initial cost of the plant if the company raises all equity externally? (Do not round Intermedlate calculations and enter your answer in dollars, not millions, rounded to the nearest whole number, e.g., 1,234,507.) b. What is the initial cost of the plant if the company typically uses 65 percent retained earnings? (Do not round intermedlate colculations and enter your answer In dollars, not millions, rounded to the nearest whole riumber, e.g., 1,234,567.) c. What is the initial cost of the plant if the company typically uses 100 percent retained earnings? (Do not round intermedlate calculatlons and enter your answer in dollers, not millions, rounded to the nearest whole number, e.g., 1,234,567.)

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