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Hartley, Inc. needs to purchase equipment for its drive-ins nationwide, and the project requires $2.15 million in external financing. The flotation costs of debt and
Hartley, Inc. needs to purchase equipment for its drive-ins nationwide, and the project requires $2.15 million in external financing. The flotation costs of debt and equity are 2% and 6.0%, respectively. Hartley wished to maintain a debt-to-equity ratio of 0.5 . What is the dollar flotation cost for the proposed financing? Multiple Choice $105,245 $143,133 $111,559 $86,301 $75,776
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