Initial cost of the project including the flotation costs

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Peterson Instruments has a debt-to-equity ratio of 0.5, without any preferred stock outstanding. The firm is analyzing a new project which requires an initial cash outlay of $630,000 for equipment. The flotation cost is 12 percent for equity and 6 percent for debt. What is the initial cost of the project including the flotation costs?

Reference no: EM131863443

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