Flotation Costs Trower Corp. has a debt$-$equity ratio of $\mathrm{.}85.$ The company is considering a new plant

that will cost $$145$ million to build. When the company issues new equity, it incurs a flotation cost

of $8$ percent. The flotation cost on new debt is $3\mathrm{.}5$ percent. What is the initial cost of the plant if the

company raises all equity externally? What if it typically uses $60$ percent retained earnings? What if all

equity investments are financed through retained earnings?Sheaves Corp. has a debt$$equity ratio of $\mathrm{.}85.$ The company is considering a new plant that will cost $$120$ million to build. When the company issues new equity, it incurs a flotation cost of $9$ percent. The flotation cost on new debt is $4\mathrm{.}5$ percent. What is the initial cost of the plant if the company raises all equity externally? What is the initial cost of the plant if the company typically uses $65$ percent retained earnings? What is the initial cost of the plant if the company typically uses $100$ percent retained earnings?