Consider the following scenario (the given information is the same as in the previous question): Suppose a company has 100 million common shares outstanding, and each share sells for $20. We have estimated that the shares have a beta of 1.2, the risk-free rate is 3%, and the expected market return is 8%. The marginal tax rate for this company is 21%. The company also has $2 billion of bonds outstanding and the yield to maturity on these bonds is 5%. The company has a target capital structure of 60% equity and 40% debt. It does not and will not issue preferred stocks in the future. Suppose the company has the flotation costs of 8% for equity and 4% for debt, the company needs to issue ________ in new securities in order to finance a $70 million project.

Question 10 options:

A)	$76.15 million
B)	$74.79 million
C)	$72.92 million
D)	$74.15 million