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Question 2: (6 pts) A company needs to raise $95 million to start a new project and will raise the money via outside sources. The
Question 2: (6 pts) A company needs to raise $95 million to start a new project and will raise the money via outside sources. The company has a target capital structure of 65 percent common stock and 35 percent debt. Flotation costs for issuing new common stock are 7 percent, and for new debt are 2 percent. What is the true initial cost the company should use when evaluating its project
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