Sunny Day Manufacturing Company is considering investing in a one-year project that requires an initial investment of $475,000. To do so, it will have to issue new common stock and wili 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 retum that Sunny Day expects to earn on its project (net of its flotation costs) is (rounded to two decimat piaces). White Uon Homebuliders 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 the year The company's eamings' and dividends' growth rate are expected to grow at the constant rate of 8.70% into the foreseeable future. If White Lion expects to incur flotation costs of 6.50% 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 eamings for this year is expected to be $857,000. Its target capital structure consists of 50% debt, 5% preferred, and 45% equity, Determine Sunny Day Manufacturing Company's retained earnings breakpoint: $1,904,444 $2,190,111 $2,094,888 $1,999,665