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i just need number 2 i have already done number 1 1. The Marfa Lights Co. is a brand new company that will be issuing

i just need number 2 i have already done number 1 image text in transcribed
1. The Marfa Lights Co. is a brand new company that will be issuing common stock and bonds in its first year to raise financing. The firm will issue 5 million shares of common stock at a public price of $42 per share. Expected dividend will be $1.80 with a growth rate of 5%. Float costs on the issue will be 8%. A 15-year, 8.2% bond issue will be sold at a quote of 99.4 with a 6% floatation cost. There will be 60,000 bonds sold. The firm's tax rate is 25%. Calculate the cost of equity and the cost of debt with floatation costs considered. Cost of equity = 9.66% Cost of Debt = 6.77% 2. If the company wanted to raise the same amount of financing selling the stock as if there no float costs, how many shares of stock do they need to sell if float costs are included? If the company wanted to raise the same amount of financing selling the bonds as if there were no float costs, how many bonds do they need to sell if float costs are included

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