1. Cold Goose Metal Works Inc. is considering a one-year project that requires an initial investment of $600,000; however, in raising this capital, Cold Goose will incur an additional flotation cost of 2%. At the end of the year, the project is expected to produce a cash inflow of $720,000. The rate of return that Cold Goose expects to earn on the project after its flotation costs are taken into account is (13.24%, 12.35%, 11.47%, OR 17.65%).

2. Cold Goose has a current stock price of $22.35 and is expected to pay a dividend of $1.36 at the end of next year. The companys growth rate is expected to remain constant at 10%. If the issue's flotation costs are expected to equal 2% of the funds raised, the flotation-cost-adjusted cost of the firm's new common stock is (12.97%, 16.21%, 16.10%, OR 13.78%).

3. Cold Gooses addition to earnings for this year is expected to be $857,000. Its target capital structure consists of 40% debt, 5% preferred stock, and 55% common stock. Cold Goose Metal Works Inc.s retained earnings breakpoint is ($1,947,728, $1,558,182, $1,869,818 OR $1,791,909) (rounded to the nearest whole dollar).