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What is the company target debt-equity ratio

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Pardon Me, Inc., recently issued new securities to finance a new TV show. The project cost $60 million, and the company paid 4.69 million in flotation costs. In addition, the equity issued had a flotation cost of 8.4 percent of the amount raised, whereas the debt issued had a flotation cost of 5.1 percent of the amount raised.

If the company issued new securities in the same proportion as its target capital structure, what is the company's target debt-equity ratio?

Reference no: EM132731487

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