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Green Caterpillar Garden Supplies Inc. is considering a one-year project that requires an initial investment of $550,000; however, in raising this capital, Green Caterpillar will

Green Caterpillar Garden Supplies Inc. is considering a one-year project that requires an initial investment of $550,000; however, in raising this capital, Green Caterpillar will incur an additional flotation cost of 4%. At the end of the year, the project is expected to produce a cash inflow of $715,000. The rate of return that Green Caterpillar expects to earn on the project after its flotation costs are taken into account is .

Green Caterpillar has a current stock price of $22.35 and is expected to pay a dividend of $1.36 at the end of next year. The company's growth rate is expected to remain constant at 6%. If the issue's flotation costs are expected to equal 4% of the funds raised, the flotation-cost-adjusted cost of the firm's new common stock is ?

Green Caterpillar's addition to earnings for this year is expected to be $420,000. Its target capital structure consists of 50% debt, 5% preferred stock, and 45% common stock. Green Caterpillar Garden Supplies Inc.'s retained earnings breakpoint is ?(rounded to the nearest whole dollar).

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