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LESCO Has a Current and a Target Debt-To-Equity Ratio of .4.Assume

Question 84

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LESCO has a current and a target debt-to-equity ratio of .4.Assume the firm has a projected net cash inflow of $45,000 for the coming year if you ignore the $90,000 needed for capital expenditures.Identify a key pro and a key con to using internally generated cash to fund the equity portion of the funds needed for the capital expenditures.

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The key pro is the zero cost of flotatio...

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