Suppose your company needs $$13$ million to build a new assembly line. Your target debt$-$equity ratio is $\mathrm{.}45.$ The flotation cost for new equity is $9$ percent, but the flotation cost for debt is only $6$ percent. Your boss has decided to fund the project by borrowing money because the flotation costs are lower and the needed funds are relatively small.Suppose your company needs $$13$ million to build a new assembly line. Your target debt$-$

equity ratio is $45.$ The flotation cost for new equity is $9$ percent, but the flotation cost for

debt is only $6$ 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.

a$.$ What is your company's weighted average flotation cost, assuming all equity is raised

externally? $($Do not round Intermedlete calculations and enter your answer as a

percent rounded to $2$ declmal places, e$.$g$.,32\mathrm{.}16.)$

b$.$ What is the true cost of building the new assembly line after taking flotation costs into

account? $($Do not round Intermedlete calculations ond enter your onswer In dollors,

not millions, rounded to the nearest whole number, e$.$g$.,1,234,367.)$