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mcdonalds co, inc is purchasing an equipment for 2 million. the market value debt-to-assets ratio of the company is %40. The company has a flotation

mcdonalds co, inc is purchasing an equipment for 2 million. the market value debt-to-assets ratio of the company is %40. The company has a flotation costs of debt of 4% and the flotation cost of equity of 10%. However, aling with debt, the company plans to use internal equity (retained earnings) to finance this project. What is the true cost of the project after taking flotation cost into consideration?

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