laking Hotation costs into account will reduce the cost of 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. False: Flotation costs are additional costs associated with raising new common stock. Green Caterpillar Garden Supplies the considering a one year project that requires an initial investment of 1550,000howeverm ang capital, Green caterpillar will incur an additional Totation cost 3%. At the kind of the year, the project is expected to produce a cash flow of $825,000. The rate of return that Green Caterpillar expect to learn on the project after it notation costs are taken into accou ... te 45.63% Green Caterpillar has a current stock price of $33.35 and expected to pay a dividend of $2.03 at the end of next year. The compa is expected to remain constant at 8%. If the issue's rotation costs are expected to 3% of the funds and the otation cos36.COST OF the firm's new common stock is 29.66% Green Caterpillar's addition to earnings for this year is expected to be $745,000. Is target capital structure consists of 50% debt, 41.07% stock, and 45% common stock. Green Caterpillar Garden Supplies Incis retained earnings breakpoint is (rounded to the nearest whole dollar) Grade low S ave & Continue here to search e a