The flotation costs are 11 percent for common stock 10


Justice, Inc. has a capital structure which is based on 30 percent debt, 5 percent preferred stock, and 65 percent common stock. The flotation costs are 11 percent for common stock, 10 percent for preferred stock, and 7 percent for debt. The corporate tax rate is 37 percent. What is the weighted average flotation cost?

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Finance Basics: The flotation costs are 11 percent for common stock 10
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