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Hansen Family Markets has a target capital structure of 50 percent debt, 5 percent preferred stock, and the remainder in common stock. The flotation costs
Hansen Family Markets has a target capital structure of 50 percent debt, 5 percent preferred stock, and the remainder in common stock. The flotation costs are 14.6 percent for common stock, 6.6 percent for preferred stock, and 6.8 percent for debt. The corporate tax rate is 21 percent. What is the weighted average flotation cost?
Weighted average flotation cost =
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