Floatation cost for debt is 4 and 8 for equity what is the


PC Inc. currently has a target D/E ratio of 0.80. It's considering a new $51 million manufacturing facility which will generate after-tax cash flows of $16.2 million in the next 5 years. The firm's current WACC is 12%. Floatation cost for debt is 4% and 8% for equity. What is the project's NPV before and after adjusting for floatation cost?

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Finance Basics: Floatation cost for debt is 4 and 8 for equity what is the
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