Southern alliance company needs to raise $45 million to start a new project and will raise the money by selling new bonds. the company will generate no internal equity for the foreseeable future. the company has a target capital structure of 65 percent common stock, 5 percent preferred stock, and 30 percent debt. flotation costs for issuing new common stock are 9 percent, for new preferred stock, 6 percent, and for new debt, 3 percent. the true initial cost figure southern should use when evaluating its project is $.(do not include the dollar sign ($). do not round the weighted average floatation cost. round your answer to the nearest whole dollar amount. (e. g., 32))

You are working on a bid to build two city parks a year for the next three years. this project requires the purchase of $249,000 of equipment that will be depreciated using straight-line depreciation to a zero book value over the three-year project life. ignore bonus depreciation. the equipment can be sold at the end of the project for $115,000. you will also need $18.000 in net working capital for the duration of the project. the fixed costs will be $37000 a year and the variable costs will be $148,000 per park. your required rate of return is 14 percent and your tax rate is 21 percent. what is the minimal amount you should bid per park? (round your answer to the nearest $100) (a) $214,300 (b) $214,100 (c) $212,500 (d) $208,200 (e) $208,400