Question 25 (1 point) A company needs to purchase equipment for a project with total cost of $2 million. It is estimated that the after-tax cash inflows from the project will be $210,000 annually in perpetuity. The company has a debt-to-assets ratio of 33.00% using market values. The firm's cost of equity is 11.50%, its pre-tax cost of debt is 6.50%, and the flotation costs of debt and equity are 1.80% and 7.60%, respectively. The tax rate is 34%. Assume the project is of similar risk to the firm's existing operations. What is the weighted average flotation cost for the company? 5.12% 5.26% 5.40% 5.54% 5.69%