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Your company is evaluating a new factory that will cost $23 million to build. Your target debt-equity ratio is 1.2. The flotation cost for new
Your company is evaluating a new factory that will cost $23 million to build. Your target debt-equity ratio is 1.2. The flotation cost for new equity is 7% and the flotation cost for new debt is 1%. The company is planning to use retained earnings for 70% of the equity financing. What are the flotation costs (in $ million)? 3+ decimals Submit
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