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Sheaves Corp. has a debt-equity ratio of .85. The company is considering a new plant that will cost $107 million to build. When the company

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Sheaves Corp. has a debt-equity ratio of .85. The company is considering a new plant that will cost $107 million to build. When the company issues new equity, it incurs a flotation cost of 7.7 percent. The flotationcost on new debt is 3.2 percent. What is the initial cost of the plant if the company raises all equity externally? (Enter your answer in dollars, not millions of dollars, e.g., 1, 234, 567. Do not round intermediate calculations and roundyour answer to the nearest whole dollar amount, e.g., 32.) Initial cash flow $ _____ What is the initial cost of the plant if the company typically uses 65 percent retained earnings? (Enter your answer in dollars, not millions of dollars, e.g., 1, 234, 567. Do not round intermediate calculations andround your answer to the nearest whole dollar amount, e.g., 32.) Initial cash flow $ _____ What is the initial cost of the plant if the company typically uses 100 percent retained earnings? (Enter your answer in dollars, not millions of dollars, e.g., 1, 234, 567. Do not round intermediate calculations andround your answer to the nearest whole dollar amount, e.g., 32.) Initial cash flow $ _____

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