Provide a detailed, stepwise mechanism for the reaction shown below. 
Definitions:
Cost of Equity
The return that shareholders require or expect to earn on their investment in the company, considered as the company's cost of retaining and using equity capital.
CGT
Capital Gains Tax, which is a tax on the profit realized on the sale of a non-inventory asset.
Flotation Cost
The total costs incurred by a company in offering its securities to the public, including underwriting, legal, and registration fees.
Target Capital Structure
The mix of debt, equity, and other financing sources a company aims to use to finance its operations and growth.
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