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Steve Smith Corp, a homeware retail company located Toronto, issued new securities to finance a new aggressive sales project. The project cost $10 million and

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Steve Smith Corp, a homeware retail company located Toronto, issued new securities to finance a new aggressive sales project. The project cost $10 million and the company paid $850,000 for flotation costs. This company has a flotation cost of equity of 9.8 percent whereas the flotation cost of debt of 6 percent. What is the firm's target D/E ratio

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