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Calculating Flotation Costs Suppose Your Company Needs 20

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Single Cylinder Cone Crusher

Calculating Flotation Costs Suppose your company needs 35 million to build a new assembly line. Your target debtequity ratio is .75. The flotation cost for new equity is 6 percent but the flotation cost for debt is only 2 percent. Your boss has decided to fund the project by borrowing money because the flotation costs are lower and the needed

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