Finance a new project

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The Frontline Corporation is planning to raise $42 million to finance a new project. Currently, the company's has a D/E ratio of .4, which will be the target for any new money raised. The expected flotation rates are 2.5% for debt and 4.5% for equity. How much will the company pay, in dollars, for flotation charges?

Reference no: EM133116618

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