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Klose outfitters inc believes that its optimal capital structure consists of 60 common equity and 40 debt and tax rate is 40 Klose must raise additional capital for expansion the firm will have

Klose outfitters inc believes that its optimal capital structure consists of 60% common equity and 40% debt and tax rate is 40%. Klose must raise additional capital for expansion. the firm will have 2 million of retained earnings with a cost of rs = 12%. New common of 6 million would have a cost of 15% Klose can raise up to 3 million at interest rate of rd =10% and 4 million of debt at rd=12%. the CFO expansion will be 5.9 million. what is the last dollar raised to complete the expansion?

 

Apr 01 2020 View more View Less

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