Flotation costs of the new common stock

Reference no: EM13148051

Debt equity ratio of 0.70, building a new $45 million manufacturing facility. cash flow of $6.2 million in perpetuity. the flotation costs of the new common stock would be 8% of the amount raised, The required return on the company's new equity is 14%. what is the NPV of the new plant? Assume that PC has a 35% tax rate.

Reference no: EM13148051

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