Question: please answer it right Intro Your company is evaluating a new factory that will cost $38 million to build. Your target debt-equity ratio is 0.3.
Intro Your company is evaluating a new factory that will cost $38 million to build. Your target debt-equity ratio is 0.3. The flotation cost for new equity is 7% and the flotation cost for new debt is 3%. The company is planning to use retained earnings for 70% of the equity financing. Part 1 Attempt 1/3 for 10 pts. What are the weighted average flotation costs as a fraction of the amount invested? 4+ decimals Submit - Attempt 1/3 for 10 pts. Part 2 What are the flotation costs (in $ million)? 2+ decimals Submit
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