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Calculate the weighted average cost of capital and the weighted average flotation cost for a company with the following data:

Debt                                      70,000

Equity                                     130,000

Rate on debt                         7%

Rate on equity                      10%

Flotation rate on debt           3%

Flotation rate on equity        2%

Tax rate                                  35%

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92344254

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