Lucas Corp. has a debt-equity ratio of .85. The company is considering a new plant that...

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Lucas Corp. has a debt-equity ratio of .85. The company isconsidering a new plant that will cost $120 million to build. Whenthe company issues new equity, it incurs a flotation cost of 9percent. The flotation cost on new debt is 4.5 percent.
a.
What is the initial cost of the plant if the company raises allequity externally? (Do not round intermediate calculationsand enter your answer in dollars, not millions, rounded to thenearest whole dollar amount, e.g., 1,234,567.)
b. What is the initial cost of the plant if the company typicallyuses 65 percent retained earnings? (Do not roundintermediate calculations and enter your answer in dollars, notmillions, rounded to the nearest whole dollar amount, e.g.,1,234,567.)
c. What is the initial cost of the plant if the company typicallyuses 100 percent retained earnings? (Do not roundintermediate calculations and enter your answer in dollars, notmillions, rounded to the nearest whole dollar amount, e.g.,1,234,567.)

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Lucas Corp. has a debt-equity ratio of .85. The company isconsidering a new plant that will cost $120 million to build. Whenthe company issues new equity, it incurs a flotation cost of 9percent. The flotation cost on new debt is 4.5 percent.a.What is the initial cost of the plant if the company raises allequity externally? (Do not round intermediate calculationsand enter your answer in dollars, not millions, rounded to thenearest whole dollar amount, e.g., 1,234,567.)b.What is the initial cost of the plant if the company typicallyuses 65 percent retained earnings? (Do not roundintermediate calculations and enter your answer in dollars, notmillions, rounded to the nearest whole dollar amount, e.g.,1,234,567.)c.What is the initial cost of the plant if the company typicallyuses 100 percent retained earnings? (Do not roundintermediate calculations and enter your answer in dollars, notmillions, rounded to the nearest whole dollar amount, e.g.,1,234,567.)

a.	What is the initial cost of the plant if the company raises allequity externally? (Do not round intermediate calculationsand enter your answer in dollars, not millions, rounded to thenearest whole dollar amount, e.g., 1,234,567.)
b.	What is the initial cost of the plant if the company typicallyuses 65 percent retained earnings? (Do not roundintermediate calculations and enter your answer in dollars, notmillions, rounded to the nearest whole dollar amount, e.g.,1,234,567.)
c.	What is the initial cost of the plant if the company typicallyuses 100 percent retained earnings? (Do not roundintermediate calculations and enter your answer in dollars, notmillions, rounded to the nearest whole dollar amount, e.g.,1,234,567.)