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Business, 11.11.2020 18:10 brysong

BBQ Corporation has a target capital structure that is 70 percent equity, 30 percent debt. The flotation costs for equity issues are 15 percent of the amount raised; the flotation costs for debt are 8 percent. If BBQ needs $150 million for a new manufacturing facility, what is the cost when flotation costs are considered? a) $130.65 million
b) $150 million
c) $165.42 million
d) $172.22 million
e) $185 million

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