The Weinstein Corporation has a target capital structure that is 80 percent equity, 20 percent debt

The Weinstein Corporation has a target capital structure that is 80 percent
equity, 20 percent debt. The flotation costs for equity issues are 20 percent of the amount
raised; the flotation costs for debt issues are 6 percent. If Weinstein needs $65 million for a new manufacturing facility, what is the true cost once flotation
costs are considered?

 

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