False: Flotation costs are additional costs associated with raising new common stock O True: Taking flotation costs into account will reduce the cost of new common stock, because you will multiply the cost of new common stock by 1 minus the flotation cost-similar to how the after-tax cost of debt is calculated Wooten Co. is considering a one-year project that requires an initial investment of $500,000; however, in raising this capital, Wooten 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 $595,000. Determine the rate of return that Wooten expects to earn on the project after flotation costs are taken into account. O 15.0% 14.2% 16.7% Wooten Co. has a current stock price of $33.35 and is expected to pay a dividend of $2.45 at the end of next year. The company's growth rate is expected to remain constant at 5.2%. If flotation costs represent 3.0% of funds raised, what is the flotation-adjusted cost of new common stock? O 10.2% 10.9% 12.8% 12.5% O Wooten Co.'s addition to earnings for this year is expected to be $420,000. Its target capital structure consists of 35% debt, 5% preferred, and 60% equity. Determine wooten's retained earnings breakpoint: O $805,000 O $840,000 $700,000 O $735,000