Current capital structure

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Please help me solve it with Excel.

A firm's capital structure is 75% equity and 25% debt. They would like to purchase some machinery that would cost $1,500,000. The firm has a flotation cost of equity of 6.5% and a flotation cost of debt of 5.75%. If they buy the equipment, how much will the firm have to pay in flotation costs? Assume that the firm maintains its current capital structure.

Please help me solve it with Excel.

Reference no: EM133110354

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