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What is the firm target D-E ratio

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Question - Suppose you are the only owner of a firm, Caroline Matts Co, a sports shoes production company located in Toronto.  Your firm issued new securities to finance a new aggressive sales project. The project cost $18 million, and the company paid $1,650,000 for flotation costs. This company has a flotation cost of equity of 9.9 percent, whereas the flotation cost of debt of 6 percent. What is the firm's target D/E ratio?

Reference no: EM133049748

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