Flotation costs on equity is 15 on debt is 5 and on


Slopes united needs to raise additional capital to expand their company. They want to maintain their current capital structure of 50% equity 40% debt, and 10% preferred stock. Their cost of equity is 10%, cost of debit is 3.5% and cost of preferred stock is 5%. Flotation costs on equity is 15%, on debt is 5%, and on preferred stock is 7%. What is Slopes United's weighted average flotation cost?

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Finance Basics: Flotation costs on equity is 15 on debt is 5 and on
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