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Botation costs for the debt prefered, and common stock and bdd them to the int ital investment cost, Because the investment cost is increased, the

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Botation costs for the debt prefered, and common stock and bdd them to the int ital investment cost, Because the investment cost is increased, the projects expected rate of retiem in reduced so it moy nat meet the firm's Aurdie rate for atceptance of the sroject, The second abproach involves aqjusting the coat of common equay as follows: The difference berween the notation asjuites cout of equaty and the cost of equity calculated witheut the folabion asjistment represents the fotaben cont adjwitment. Quantitative Problemt barton industres expect next years annual divhtend, D1, to be 12.30 and it expects dividends to gros at a chestant rae 0 = 4.4 s, The firm's current common atock price, Fi, it Wermeciate caiculations. Aound rout answer to two decimal places

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