What is the initial cost of the plant-mayweather corp

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Mayweather Corp. has a debt-equity ration of 0.75. the firm is considering a new plant that will cost $48 million to build. When the company issues new equity, it incurs a floatation cost of 8%. The floatation cost on new debt is 3.5%. What is the initial cost of the plant if the company raises all equity externally?

Reference no: EM132596053

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