Bounce Ball Securities has a target capital structure of 3/4 equity and 1/4 debt. It is seeking to raise $40 million to establish a new development. It intends to maintain its target capital ratio. The flotation cost for an equity raising is 14% and for debt it is much cheaper at a cost of only 3%. Approximately how much will Bounce Ball Securities have to raise in total in order to establish the new development?

Group of answer choices

between $40 million and $43 million

less than $44 million

none of the given answers

between $47 million and $50 million

more than $50 million