What is the total flotation cost of raising funds


The MFC Corporation has decided to build a new facility. It estimates the cost of the facility at $9.7 million. MFC wishes to finance this project using its traditional debt-to-equity ratio of 1.5. The issue cost of equity is 6%, and the issue cost of debt is 1%. What is the total flotation cost of raising funds?

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Finance Basics: What is the total flotation cost of raising funds
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