Wildlife Inc. has recently issued new securities to finance a new zoo. The project cost $ 1
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Question:
Wildlife Inc. has recently issued new securities to finance a new zoo. The project cost $ million, and the company paid $ in flotation cost. In addition, the equity issued had a flotation cost of of the amount raised, whereas the debt issued had a floatation cost of of the amount raised. If the company issued new securities in the same proportion as its target capital structure, what is the companys target debtequity ratio?
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