A company needs to purchase equipment for a project with total cost of $2 million. It is estimated that the after-tax cash inflows from the project will be $210,000 annually in perpetuity. The company has a debt-to-assets ratio of 37.50% using market values. The firm's cost of equity is 12.75%, its pre-tax cost of debt is 7.75%, and the flotation costs of debt and equity are 3.05% and 8.85%, respectively. The tax rate is 34%. Assume the project is of similar risk to the firm's existing operations. What is the weighted average flotation cost for the company?

	6.17%
	6.34%
	6.51%
	6.68%
	6.84%