Amba Co. is considering a one-year project that requires an initial investment of $475,000; however, in raising this capital, Amba will incur an additional flotation cost of 2.0%. At the end of the year, the project is expected to produce a cash inflow of $550,000. Determine the rate of return that Amba expects to earn on the project after flotation costs are taken into account. 12.2% 10.8% 13.5% 8.1% Amba Co. has a current stock price of $33.35 and is expected to pay a dividend of $2.03 at the end of next year. The company's growth rate is expected to remain constant at 8.7%. If flotation costs represent 3.0% of funds raised, what is the flotation-adjusted cost of new common stock? 12.8% 12.0% 15.0% 14.8%