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Hope Productions is considering a project with an initial start up cost of $960,000. The firm maintains a debt-equity ratio of 0.30 and has a
Hope Productions is considering a project with an initial start up cost of $960,000. The firm maintains a debt-equity ratio of 0.30 and has a flotation cost of debt of 6.8 percent and a flotation cost of equity of 10.4 percent. What is the initial cost of the project including the flotation costs?
Group of answer choices
$959,417
$982,265
$992,384
$1,061,586
None of above is correct.
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