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Suppose your company needs $15 million to build a new assembly line. Your target debt-equity ratio is .60. The flotation cost for new equity is

Suppose your company needs $15 million to build a new assembly line. Your target debt-equity ratio is .60. The flotation cost for new equity is 8%, and the flotation cost for debt is 5%. What is your companys weighted average flotation cost, assuming all equity is raised externally?

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