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Turtle Co. has a debt-to-equity ratio of 1. The company is considering building a new...

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Accounting

Turtle Co. has a debt-to-equity ratio of 1. The company is considering building a new plant for $30 million. When the company issues new equity, it incurs a flotation cost of 8%. The flotation cost on new debt is 3%.

a) Calculate the weighted average flotation costs. (Enter percentages as decimals and round to 4 decimals)

b) Calculate the cost of the plant, including flotation costs. (Round to 2 decimals)

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