QUESTIONS points ICLO-3) Suppose your company needs 35 million to build a new assembly line. Your target debt-equity ratio is 0.65. The flotation cost for new equity is 9 percent but the flotation cost for debt is only 5 per cent. Your boss has decided to fund the project by borrowing money, because the flotation costs are lower and the required funds are relatively small a What is your company's weighted average flotation cost, assuming all equity is raised externally? (1 marks) b. What is the true cost of building the new assembly line after taking flotation costs into account? [1 marks) c. Does it matter in this case that the entire amount is being raised from debt? (1 mark) For the toolbar, press ALT+F10 (PC) or ALTFN+F10(Mac). BI VS Paragraph Arial 14px 2 T X