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Question 1 ( 10 marks) Andrews Corp. has a debt-equity ratio of 0.35 . The company is considering a new plant that will cost $20

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Question 1 ( 10 marks) Andrews Corp. has a debt-equity ratio of 0.35 . The company is considering a new plant that will cost $20 million to build. When the company issues new equity, it incurs a flotation cost of 10%. The flotation cost on new debt is 5%. What is the initial cost of the plant if the company typically uses 60% retained earnings

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