Breckinridger Corp has a debt equity ratio of 80 The company is considering a new plant that will cost $115 million to build When the company issues new equity, it incurs a flotation cost of 8 5 percent The flotation cost on new debt is 4 percent a What is the initial cost of the plant if the company raises all equity externally (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole dollar amount, e g , 1,234,567 ) b What is the initial cost of the plant if the company typically uses 55 percent retained earnings (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole dollar amount, e g , 1,234,567 ) c What is the initial cost of the plant if the company typically uses 100 percent retained earnings (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole dollar amount, e g , 1,234,567 )

Question

Breckinridger Corp  has a debt equity ratio of  80  The company is considering a new plant that will cost $115 million to build  When the company issues new equity, it incurs a flotation cost of 8 5 percent  The flotation cost on new debt is 4 percent  a  What is the initial cost of the plant if the company raises all equity externally  (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole dollar amount, e g , 1,234,567 ) b  What is the initial cost of the plant if the company typically uses 55 percent retained earnings  (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole dollar amount, e g , 1,234,567 ) c  What is the initial cost of the plant if the company typically uses 100 percent retained earnings  (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole dollar amount, e g , 1,234,567 )

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a.	What is the initial cost of the plant if the company raises all equity externally? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole dollar amount, e.g., 1,234,567.)
b.	What is the initial cost of the plant if the company typically uses 55 percent retained earnings? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole dollar amount, e.g., 1,234,567.)
c.	What is the initial cost of the plant if the company typically uses 100 percent retained earnings? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole dollar amount, e.g., 1,234,567.)

Question

Breckinridger Corp. has a debt-equity ratio of .80. The company is considering a new plant that will cost $115 million to build. When the company

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