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When Calculating the Weighted Average Flotation Cost,the Weights Should Be

Question 40

Multiple Choice

When calculating the weighted average flotation cost,the weights should be based on the:


A) mix of debt and equity that will be used to finance the specific project.
B) firm's target capital structure.
C) percentages of internal and external financing that will be used for the project.
D) firm's current mix of debt and equity.
E) average amounts of external capital raised during the past twelve months.

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