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Intro The flotation cost for new equity is 8% and the flotation cost for new debt is 1%. The company has a target debt-equity ratio
Intro The flotation cost for new equity is 8% and the flotation cost for new debt is 1%. The company has a target debt-equity ratio of 1.8. Part 1 | Attempt 1/10 for 10 pts. What are the weighted average flotation costs as a fraction of the amount invested? 4+ decimals Submit Part 2 - Attempt 1/10 for 10 pts. What would be the weighted average flotation costs as a fraction of the amount invested if the company used retained earnings to finance the equity portion of the amount invested? 4+ decimals ubmit
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