Suppose your company needs $$12$ million to build a new assembly line. Your target debt$-$to$-$equity ratio is $0\mathrm{.}50.$ The flotation cost for

new equity is $12$ percent, but the flotation cost for debt is only $9$ percent. Your boss has decided to fund the project by borrowing

money because the flotation costs are lower and the needed funds are relatively small.

b$.$ What is your company's weighted average flotation cost, assuming all equity is raised externally? $($Do not round intermediate

calculations. Round the final answer to $2$ decimal places.$)$

Flotation cost

$\%$

c$.$ What is the true cost of building the new assembly line after taking flotation costs into account? $($Do not round intermediate

calculations. Round the final answer to the nearest whole dollar. Enter the answer in dollars. Omit $ sign in your response.$)$

Amount raised