A firm has a capital structure that is 35% debt and 65% equity. The management...
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Finance
A firm has a capital structure that is 35% debt and 65% equity. The management wishes to enter into a project that requires a capital outlay of $5,000,000. The firm's flotation cost of equity is 6% and flotation cost of debt is 4%. How much will the firm have to pay out in flotation costs if they accept the project and maintain their current capital structure? O $235,602 o $279,831 0 $5,000,000 o $4,720,169 $5,279,831
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