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Comedy, Inc. has a debt-equity ratio of 0.54. The firm is analyzing a new project which requires an initial cash outlay of $430,000 for equipment.
Comedy, Inc. has a debt-equity ratio of 0.54. The firm is analyzing a new project which requires an initial cash outlay of $430,000 for equipment. The flotation cost is 8.6 percent for equity and 5 percent for debt. What is the initial cost of the project including the flotation costs?
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