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Turtle Co. has a debt-to-equity ratio of 1.50. The company is considering a new plant that will cost $350 million to build. When the company
Turtle Co. has a debt-to-equity ratio of 1.50. The company is considering a new plant that will cost $350 million to build. When the company issues new equity, it incurs a flotation cost of 10%. The flotation cost on new debt is 3%.
Calculate the weighted average flotation costs. (Enter percentages as decimals and round to 3 decimals)
Calculate the cost of the plant including flotation costs. (Round to 2 decimals)
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