What is the dollar amount of the flotation costs

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Bleakly Enterprises has a capital structure of 56 percent common stock, 4 percent preferred stock, and 40 percent debt. The flotation costs are 3.7 percent for debt, 4.8 percent for preferred stock, and 5.2 percent for common stock. The corporate tax rate is 21 percent. If Bleakly needs $102 million for a new manufacturing facility,

what is the true cost once flotation costs are considered?

what is the dollar amount of the flotation costs?

Reference no: EM132731490

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