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Business, 27.11.2019 01:31 deflox74

Medina corp. has a debt-equity ratio of .75. the company is considering a new plant that will cost $125 million to build. when the company issues new equity, it incurs a flotation cost of 10 percent. the flotation cost on new debt is 4 percent. what is the initial cost of the plant if the company raises all equity externally?

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