5. Cost of new common stock 2. 3. 5. STEP: 3 of 5 Green Caterpillar Garden Supplies Inc. is considering a one-year project that requires an initial investment of $500,000; however, in raising this capital, Green Caterpillar will incur an additional flotation cost of 5%. At the end of the year, the project is expected to produce a cash inflow of $600,000. The rate of return that Green Caterpillar expects to earn on the project after its flotation costs are taken into account is