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Frontier Corp. needs $14 million to build a new assembly line. The firm's target D/E...

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Finance

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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