Frontier Corp. needs $14 million to build a new assembly line. The firm's target D/E...
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Frontier Corp. needs $14 million to build a new assembly line. The firm's target D/E ratio is 1/9. The flotation cost for new equity is 10 percent and the flotation cost for debt is 5%. What is the true cost of building the new assembly line after taking flotation costs into account?
14.74 million
14.94 million
15.33 million
15.47 million
15.51 million
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