5. Cost of new common stock 1. 2. TOTAL SCORE: 2/5 3. 4. STEP: 3 of 5 5. Cold Goose Metal Works Inc. is considering a one-year project that requires an initial investment of $700,000; however, in raising this capital, Cold Goose will incur an additional flotation cost of 3%. At the end of the year, the project is expected to produce a cash inflow of $840,000. The rate of return that Cold Goose expects to earn on the project after its flotation costs are taken into account is Grade Step 3 (to complete this step and unlock the next step)

5. Cost of new common stock Cold Goose Metal Works Inc. is considering a one-year project that requires an initial investment of $700,000; however, in raising this copital, Cold Goose will incur an additional flotation cost of 3%. At the end of the year, the project is expected to produca a cash inflow of $840,000. The rate of return that Cold Goose expects to earn on the project after its flotation costs are taken into account is