Suppose that British Petroleum (BP) expects its fossil fuel production unit to remain in operation only two more years before the company shifts to completely renewable energy. The company is planning to pay a dividend of $1 billion at the end of year 1 and $1 billion at the end of year 2 based on its projected cash flow from assets. Assuming that the company has a 10 percent discount rate and its value is only a function of its dividend stream, the value of the entire company is Suppose instead investors prefer a dividend of $1.2 billion at the end of year 1 . In order to satisfy investors the company must raise either by borrowing money. Suppose that investors require a 10 percent return. Additionally, suppose that the company has to pay their underwriter an additional $20 million as part of the underwriting expense at the end of year 2. The aggregate dividend paid in year 2 under this alternative dividend policy is when including the loan repayment and underwriting costs. Assuming that the company has a 10 percent discount rate, the value of the entire company is showing that dividend policy relevant when including flotation costs. (a) $1.72 billion; $200 million; $760 million; $1.72 billion; is not (b) $1.74 billion; $200 million; $780 million; $1.72 billion; is (c) $1.74 billion; $200 million; $760 million; $1.72 billion; is (d) $1.74 billion; $200 million; $780 million; $1.74 billion; is not