Q$1.$ Suppose Gulf Industries needs $$35$ million to build a new assembly line. The

expansion would be funded by selling new securities $($stock and bond$).$ Based on

conversations with its investment banker, SABIC believes its flotation costs will run

$8\%$ of the amount raised. What is the true cost of building the new assembly line

after taking flotation costs into account?

a$.$ $$32,987,840$

b$.$ $$38,043,478$

C$.$ $$41,980,762$

d$.$ $$42,982,000$

e$.$ None of the above, the answer is $