What is the cost of the plant including flotation costs

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Lochlear Inc. has a debt to equity ratio of 0.50. The company is considering a new paper mill that will cost $150 million to build. When the company issues new equity, it incurs a flotation cost of 7.5%. The flotation cost on new debt is 2%.

What is the cost of the plant including flotation costs

Reference no: EM132408744

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