V D2L McGraw Hill Connect X Question 4 - Week 5 X ChatGPT - Corporate ChatGPT - math X *Chat Thread X C The Saunders Invest X C The IPO Investment E X X C 20 https://ezto.mheducation.com/ext/map/index.html?_con=conexternal_browser=0launchUrl=https%253A%252F%252Fnewconnect.mheducation.com%252Fstudent%252Fclass%252Fsection.. R Week 5 Problems i Saved Help Save Exit Submit Check my work 4 Suppose your company needs $15 million to build a new assembly line. Your target debt-equity ratio is .55. The flotation cost for new equity is 11 percent, but the flotation cost for debt is only 8 percent. Your boss has decided to fund the project by borrowing money 20 because the flotation costs are lower and the needed funds are relatively small. points a. What is your company's weighted average flotation cost, assuming all equity is raised externally? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. eBook b. What is the true cost of building the new assembly line after taking flotation costs into account? Note: Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest Print whole dollar, e.g. 1,234,567. References a. Weighed average flotation cost % b. True cost Mc Graw Hill Q Search 2 OKC - BOS 11:04 AM Video highlight 3/13/2025