Question: The floatation costs for issuing common stock, preferred stock, and debt are 4%,2% and 3%, respectively. The firm plans to maintain the same capital structure.

 The floatation costs for issuing common stock, preferred stock, and debt

The floatation costs for issuing common stock, preferred stock, and debt are 4%,2% and 3%, respectively. The firm plans to maintain the same capital structure. Including flotation costs in the analysis, by how much does the NPV decrease? Note: You have already calculated the WACC in the previous question. This is here as a reference in case you need it: Bluefield Corporation has 6 million shares of common stock outstanding, 600,000 shares of preferred stock that pays an annual dividend of $8, and 200,000 bonds with a 10 percent coupon (semiannual interest) and 20 years to maturity. At present, the common stock is selling for $50 per share, the bonds are selling for $950.62 per $1,000 of face value, and the preferred stock is selling at $74 per share. The estimated market return is 13%, the risk free rate is 8%, and Bluefield's beta is 1.4 . Bluefield's tax rate is 30 percent

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