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How much additional capital should borrow to invest

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Question 1: A firm is planning to invest $750,000 in new projects and plans to borrow 40% in bonds and issue shares for the remaining 60%. Flotation costs are expected to 6% for issuing shares for 2% for bonds. How much additional capital should they borrow to invest $750,000? Use the average flotation cost to determine the amount.

Reference no: EM132505908

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