What is the initial cost of the plant if the company typical

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Reference no: EM133492003

Question: Andrews corp. has a debt-equity ratio of 0.35. The company is considering a new plant that will cost $20 million to build. when the company issues new equity, it incurs a flotation cost of 10%. The flotation cost on new debt is 5%. What is the initial cost of the plant if the company typically uses 60% retained earnings?

Reference no: EM133492003

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