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show calculations, not excel 7. Suppose your company needs $75 million to build a new facility. Your company's target capital structure is 60% debt and

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show calculations, not excel

7. Suppose your company needs $75 million to build a new facility. Your company's target capital structure is 60% debt and 40% equity. The flotation cost for new equity is 7%, and the flotation cost for debt is 3%. Your boss indicates that the firm would probably issue equity to fund the project. What is the true cost of building the new assembly line, taking flotation costs into account

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