Question 10 (2.5 points) 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 1.25, the risk free rate is 2%, and the expected market return is 6%. The marginal tax rate for this company is 35%. The company also has $1 billion of bonds outstanding and the yield to maturity on these bonds is 4%. 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 10% for equity and 6% for debt, the company needs to issue _ __ in new securities in order to finance a $100 million project OA) $109.49 million OB) $100.00 million OC) $110.00 million OD) $109.17 million