The floatation costs for issuing common stock, preferred stock , and debt are 4%,2% and 3%, respectively. The firm plans to maintain the same capital structure. including flotation costs in the analysis, by how much does the NPV decrease?

Bluefield corporation has 6 million shares of common stock outstanding 600,000 shares of preferred stock that pays an annual dividend of$8, and 200,000 bonds with a 10 percent coupon( semiannual interest)and 20 years to maturity. at present the common stock is selling fo $50 per share , the bonds are selling for $950.62 per $1000 of face value, and the preferred stock is selling at $74per share. The estimated market return is 13% the risk free rate is8% and Bluefield beta tax rate is 30 %