What is the weighted average flotation cost

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Problem: Suppose a firm is made up of 56% equity and 6% preferred stock. The remaining portion of the capital structure is debt. The cost of raise equity is 9.5%, the cost to raise preferred stock is 8.75%, and the cost to raise debt is 2.5%.

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Question: What is the weighted average flotation cost? Can you please help me by providing the authentic solution of this problem.

Reference no: EM132419256

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