Weighted average flotation cost

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Reference no: EM132539561

Fiat Inc. has a target debt-equity ratio of 0.52. The cost of floating equity is 4.75 percent and the flotation cost of debt is 3.3 percent. The firm's tax rate is 24 percent. What should the firm use as their weighted average flotation cost? (Choose closest answer if necessary)

Reference no: EM132539561

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