R&C Tech has a debt-to-equity ratio of .41 (D/E = .41) and is planning to raise $55 million to fund a new project. The flotation cost on new debt is 4.1 percent and 6.85 percent for new equity.

a) How much will the company need to raise to cover these costs and cover the initial investment if all equity is raised externally?

b) How much would it need to raise if it is using 75 percent external equity?

Solve using only a financial calculator.