True: Taking flotation costs into account will reduce the cost of new common stock, because you will multiply the cost of new common stock by 1 minus the flotation cost-similar to how the after-tax cout of debt is calculated. False: Flotation costs are additional costs associated with raising new common stock: Npha Moose Transporters is considenng investing in a one year project that requires an initial investment of $500,000. Io do so, it will have to issue new common stock and will incur a flotation cost of 2.00%, At the end of the rear, the project is expected to produce a cash inflow of $595,000. The rate of return that Alpha Meose expects to eain on is project (net of its fiotation costs) is (rounded to two decimal places). Sunmy Day Manudacturing Company has a current stock price of $22.35 per share, and is expected to poy a per-share dividend of $2.03 at the end of the veat, The corvpany's earnings' and dividends' growh rate are expected to grow at the constant rate of 9.40% into the foreseeable future. If Sunny Dary expects to incur flotation costs of 6.50% of the value of its newly-raised equity funds, then the flotation-adjusted (oet) cost of its new carnmon stock (rounded to two decimal places) should be Apha Moose Transporters Ca:'s addation to earnings for this year is expected to be $857,000, Its target capital structure consasts of 40% debe, 5% preferted, and 55% equity, Determine Alpha Moose Transporters's retained earnangs breakpoint: $2,142,500 51,400,279 $1,869,818 11,550,182