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Calculate the weighted average flotation cost

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Question: Calculate the weighted average cost of capital and the weighted average flotation cost for a company with the following data:

Debt 70,000

Equity 130,000

Rate on debt 7%

Rate on equity 10%

Flotation rate on debt 3%

Flotation rate on equity 2%

Tax rate 35%

Reference no: EM131953126

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