Sunny Day Manufacturing Company is considering investing in a one-year project that requires an initial investment of $475,000. To do so, itll have to issue new common stock and will incur a flotation cost of 2.00%. At the end of the year, the project is expected to produce a cash inflow of $595,000. The rate of return that Sunny Day expects to earn on its project (net of its flotation costs) is places). (rounded to two decimal White Lion Homebuilders has a current stock price of $22.35 per share, and is expected to pay a per-share dividend of $2.45 at the end of next year The company's earnings, and dividends, growth rate are expected to grow at the constant rate of 9.40% into the foreseeable future. If white Lion expects to incur flotation costs of 3.750% of the value of its newly-raised equity funds, then the flotation-adjusted (net) cost of its new common stock (rounded to two decimal places) should be Sunny Day Manufacturing Company Co.'s addition to earnings for this year is expected to be $857,000. Its target capital structure consists of 40% debt, 5% preferred, and 55% equity. Determine Sunny Day Manufacturing Company's retained earnings breakpoint: $1,714,000 $2,142,500 $1,636,091 $1,558,182