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Please complete all parts of problem #5 Apollo Learnings needs $24 million to build a new campus. The company has a target debt-equity ratio of
Please complete all parts of problem #5
Apollo Learnings needs $24 million to build a new campus. The company has a target debt-equity ratio of 1.8.
The flotation cost for new equity is 7% and the flotation cost for new debt is 2%.
5A) What are the weighted average flotation costs as a fraction of the amount invested?
5B) What is the true cost of building the new campus (in $ million)?
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