4. Calculating Flotation Costs Kalahari Conglomerate company needs to raise $55,000,000 to start a new project and will raise the money by selling new bonds. The company has a target capital structure of 65.00% common stock, 5.00% preferred stock, and 30.00% debt. Flotation costs for issuing new common stock are 10.00%, for new preferred stock, 10.00%, and for new debt, 7.00%. What is the true initial cost figure Kalahari should use when evaluating its project? Cost of Project Including Flotation Costs: $ Points: 15 5. Break Even EBIT Norfolk Nascent Corporation is comparing two different capital structures, an all equity plan (Plan 1) and a levered plan (Plan II). Under Plan I, Norfolk Nascent would have 200,000 shares of stock outstanding. Under Plan II, there would be 100,000 shares of stock outstanding and $1,000,000 in debt outstanding. The interest rate on the debt is 12.00% and there are no taxes. a. If EBIT is $240,000, calculate EPS for Plan I and Plan II. Plan IEPS: $ Points: 5 Plan II EPS: $ Points: 5 b. If EBIT is $360,000, calculate EPS for Plan I and Plan II. Plan I EPS: $ Points: 5 Plan II EPS: $ Points: 5 C. The break-even EBIT is $_ Points: 15