please help w 2 problems thank you.

1 a firm plans to lose new stock, flotation costs (Investment bankers' fees) should not be ignored. There are two approaches to use to account for flotation costs. The first approach is to add the sum of rotation costs for the debt, preferred, and common stock and add them to the initial investment cost Because the investment cost is increased, the projects expected rate of return is reduced to it may not meet the firm's hurdle rate for acceptance of the project. The second approach involves adjusting the cost of common equity as follows: Cont of equity from new stock 1. =+* The afferunce netween the Notation-adjusted com of equity and the cost or equity calculated without the flotation adjustment represents the Motation cost adjustment Quantitative Problemi tarton Industries expects next year's annual dividend, 0, 00 $2,00 and is expects dividend to grow at a constant race 9-44%. The firmy current common stock rice, si $25,00. If it needs tout new common stock, the firm will encounter a 12 notation cont. What is the flotation cout adjustment that must be added to les cost of retained earning Do not round intermediate calculation. Round your answer to two decimal places What is the cost of new common equity considering the estimate made from the the estimation methodologies? Do not round intermediate calculations. Round your answer to two decimal places The firm's target capital structure is the mix of debt, preferred stock, and common equity the firm plans to raise funds for its future projects. The target proportions of debt, preferred stock, and common equity, along with the cost of these components, are used to calculate the firm's weighted average cost of capital (WACC). If the firm will not have to Issue new common stock, then the cost of retained earnings is used in the firm's WACC calculation. However, if the firm will have to issue new common stock, the cost of new common stock should be used in the firm's WACC calculation Quantitative Problem: Barton Industries expects that its target capital structure for raising funds in the future for its capital budget will consist of 40% debt, 5% preferred stock and 5 common equity. Note that the firm's marginal tax rate is 25. Assume that the firm's cost of debt, 9.5%, the firm's cost of preferred stock, Is8.79 and the firm's cost of equity is 12.24% for old equity... and 12.4% for new equity.ru What is the firm's weighted average cost of capital (WACC) if it uses retained earnings as its source of common equity Do not round Intermediate calculations, Round your answer to two decimal places. What is the firm's weighted average cost of capital (WACC) if it has to issue new common stock? Do not round intermediate calculations. Round your answer to two decimal places We