please answer following question using previous feed back from a simular question

Herriman Solutions needs $14.2 million to buld a new assembly line, The company's target debt-equity ratio is 0.88 . The flotation cost for new equity is 10 percent, but the floatation cost for debt is only 5.5 percent. The company has sufficient resources to finance the equity portion of the assembly line internally. What is the true cost of building the new assembly line after taking flotation costs into account? Total initial cont =$ Feedback If equity is financed internally, then the flotation cost of equity fA=(E+D)EfE+(E+D)DfD%fA=(1+0.78)10+(1+0.78)0.785.4%=2.37% True initial cost of the project =12.37%($14.1$1,000,000)