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Shinedown Company needs to raise $95 million to start a new project and will raise the money by selling new bonds. The company will generate

Shinedown Company needs to raise $95 million to start a new project and will raise the money by selling new bonds. The company will generate no internal equity for the foreseeable future. The company has a target capital structure of 65 percent common stock, 5 percent preferred stock, and 30 percent debt. Flotation costs for issuing new common stock are 7 percent, for new preferred stock, 4 percent, and for new debt, 2 percent. a. Assuming no taxes, what is the weighted average flotation cost? b. What is the true total cost figure the company should consider when evaluating its project

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