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Question 14.6: The Weinstein Corporation has a target capital structure tha...

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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