When a firm has flotation costs equal to 6% of the funding need, it should: a. Increase the weighted average cost of capital (WACC) to offset these expenses by multiplying the WACC by 1.06. O b. Increase the weighted average cost of capital (WACC) to offset these expenses by dividing the WACC by (1-.06). O c. Add 6% to the weighted average cost of capital to get the discount rate for the project. O d. Increase the initial project cost by multiplying that cost by 1.06. O e. Increase the initial project cost by dividing that cost by (1-.06).

When a firm has flotation costs equal to 6% of the funding need, it should: a. Increase the weighted average cost of capital (WACC) to offset these expenses by multiplying the WACC by 1.06 . b. Increase the weighted average cost of capital (WACC) to offset these expenses by dividing the WACC by (106). c. Add 6% to the weighted average cost of capital to get the discount rate for the project. d. Increase the initial project cost by multiplying that cost by 1.06 . e. Increase the initial project cost by dividing that cost by (106)