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Calculate the weighted average flotation costs

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Question: Leonardo Co. has a debt to equity ratio of 0.65. The company is considering a new plant that will cost $250 million to build. When the company issues new equity, it incurs a flotation cost of 7%. The flotation cost on new debt is 3%. Calculate the weighted average flotation costs. (Enter percentages as decimals and round to 4 decimals)

Reference no: EM132753128

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