5. Cost of new common stock 1. 2. 3. 4. 5. STEP: 3 of 5 Fuzzy Button Clothing Company is considering a one-year project that requires an initial investment of $400,000; however, in raising this capital, Fuzzy Button will incur an additional flotation cost of 5%. At the end of the year, the project is expected to produce a cash inflow of $480,000. The rate of return that Fuzzy Button expects to earn on the project after its flotation costs are taken into account is