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Please show formulas Latte Larry has a target debt-to-equity ratio of 0.6 and is planning to expand into new markets. The expansion requires initial net

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Please show formulas

Latte Larry has a target debt-to-equity ratio of 0.6 and is planning to expand into new markets. The expansion requires initial net capital spending of $73,000,000, but you estimate the expansion will generate after-tax cashflows of $7,000,000 in the first year, and the cash flows will grow at 3.0% in perpetuity. The company plans to use all external financing. The floatation cost of debt is 3.0% and the floatation cost of equity is 6.0%. 1. Calculate the firm's weighted average float (as a percentage). 2. Calculate the total cost of the project, including floatation) 3. Calculate the project's NPV given the WACC is 12.0%. 13 points 0.60 Debt-equity ratio Projected cost $ Aftertax cash flow (year 1) $ 73,000,000 7,000,000 Cashflow growth rate 3.0% 6.0% Equity floatation costs (%) Debt floatation costs (%) WACC 3.0% 12.0% Debt-to-Asset ratio Equity-to-Asset ratio Floatation cost (%) Project cost ($) NPV

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