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Cucuidled. False: Flotation costs are additional costs associated with raising new common stock. Alpha Moose Transporters is considering investing in a one-year project that requires an initial investment of $450,000. To do so, it will have to issue new common stock and will incur a flotation cost of 2.00%. At the end of the year, the project is expected to produce a cash inflow of $550,000. The rate of return that Alpha Moose expects to earn on its project (net of its flotation costs) is 14.87% (rounded to two decimal places). 17.85% Sunny Day Manufacturing Company has a current stock price of $33.35 per share, and is a pay a per-share dividend of $1.36 at the end of the year. The company's earnings' and dividends' growth rate are expected to grow at the 14.87% ate of 9.40% into the foreseeable future. If Sunny Day expects to incur flotation costs of 6.50% of the value of its newly-raised equity funds, otation-adjusted (net) cost of its new common 11.90% stock (rounded to two decimal places) should be 13.76% 19.83% Alpha Moose Transporters Co.'s addition to earnings for this year is expected to be $857,000. Tes target capital structure consists of 35% debt, 5% preferred, and 60% equity. Determine Alpha Moose Transporters's retained earnings breakpoint: O $1,356,916 O $2,448,571 O $1,642,583 $1,428,333 dted. False: Flotation costs are additional costs associated with raising new common stock. Alpha Moose Transporters is considering investing in a one-year project that requires an initial investment of $450,000. To do so, it will have to issue new common stock and will incur a flotation cost of 2.00%. At the end of the year, the project is expected to produce a cash inflow of $550,000. The rate of return that Alpha Moose expects to earn on its project (net of its flotation costs) is 14.87% (rounded to two decimal places). Sunny Day Manufacturing Company has a current stock price of $33.35 per share, and is expected to pay a per-share dividend of $1.36 at the end of the year. The company's earnings and dividends' growth rate are expected to grow at the constant rate of 9.40% into the foreseeable future. If Sunny Day expects to incur flotation costs of 6.50% of the value of its newly-raised equity funds, then the flotation-adjusted (net) cost of its new common stock (rounded to two decimal places) should be 13.76% 13.76% Alpha Moose Transporters Co.'s addition to earnin year is expected to be $857,000. Its target capital structure consists of 35% debt, 5% preferred, and 60% equity. Determine Alpha Mod 11.01% rters's retained earnings breakpoint: O $1,356,916 13.48% O $2,448,571 11.70% O $1,642,583 $1,428,333 Alpha Moose Transporters is considering investing in a one-year project that requires an initial investment of $450,000. To do so, it will have to issue new common stock and will incur a flotation cost of 2.00%. At the end of the year, the project is expected to produce a cash inflow of $550,000. The rate of return that Alpha Moose expects to earn on its project (net of its flotation costs) is 14.87% (rounded to two decimal places). Sunny Day Manufacturing Company has a current stock price of $33.35 per share, and is expected to pay a per-share dividend of $1.36 at the end of the year. The company's earnings' and dividends' growth rate are expected to grow at the constant rate of 9.40% into the foreseeable future. If Sunny Day expects to incur flotation costs of 6.50% of the value of its newly-raised equity funds, then the flotation-adjusted (net) cost of its new common stock (rounded to two decimal places) should be 13.76% Alpha Moose Transporters Co.'s addition to earnings for this year is expected to be $857,000. Its target capital structure consists of 35% debt, 5% preferred, and 60% equity. Determine Alpha Moose Transporters's retained earnings breakpoint: O $1,356,916 O $2,448,571 O $1,642,583 O $1,428,333