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Kirk Enterprises has a capital structure of 30 percent common stock, 10 percent preferred stock, and 60 percent debt. The flotation costs are 3.25 percent
Kirk Enterprises has a capital structure of 30 percent common stock, 10 percent preferred stock, and 60 percent debt. The flotation costs are 3.25 percent for debt, 6 percent for preferred stock, and 9.5 percent for common stock. The corporate tax rate is 34 percent. What is the weighted average flotation cost?
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