True or False: The following statement accurately describes how flims make decisions related to issuing new common stock. Taking flotation costs into account will reduce the cost of new common stock, True: Toking fiotation costs into sccount will reduce the cost of new comman stock, because you will multiply the cost of new common stock by 1 minus the flototion cost-similar to how the after-tax cost of debt is calculated. False: Flotation costs are additional costs associated weth raising new common stock. White Lon Hemetuliders is considering investing in s one vear project that requires an initial investment of 3450,000 . To do so, it will have to issue new common stock and vill incur a fiotation cost of 2.0045. At the end of the yeat, the project is expected to prodice a cash inflow of $595, 000. The rate of return that wivte Lion expects to eam on its project (net of its fistation costs) is (rounded to two decimal places). Nipha Moose Tramporters has a current stock price of $22.35 per share, and is expected to pay a per-stare dividend of 52.03 at the end of the year. The comparyrs earnings' and dividends' gromit rote are expected to grow at the constant rate of 9.40. into the foreseeable future. If Alpha Moose expects toincun flotation costs of 6.50% of the value of its nentiv-raised equity funds, then the flotation-adjusted (net) cost of its new common stock (rounged to two decinal places) should be 1veferred, and 45s equity, Determine white tion thomeboilders retained earnings breakpoint 1),490,000 31.730,334 51,455,56 11.57270