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Hologram, Inc. is considering a project which has an initial startup cost of $500,000. The firm maintains a target debt-equity ratio of 0.70. The flotation
Hologram, Inc. is considering a project which has an initial startup cost of $500,000. The firm maintains a target debt-equity ratio of 0.70. The flotation cost of debt is 4% and the flotation cost of equity is 12%. The firm has sufficient internally generated equity to cover the equity cost of this project. What is the initial cost of the project including the flotation costs
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