Question
bonds: builtrite is planning on offering a $1000 par value, 20 year 8% coupon bond with an expected selling price of $1025. Flotation costs would
bonds: builtrite is planning on offering a $1000 par value, 20 year 8% coupon bond with an expected selling price of $1025. Flotation costs would be $55 per bond. Preferred stock: builtrite could sell a $46 par value preferred with an 8% coupon for $38 a share. Flotation costs would be $2 a share. common stock: currently the stock is selling for $62 a share and has paid a $6.82 dividend. Dividends are expected to continue growing at 13%. flotation costs would be $3.75 a shareand builtrite has $350,000 in avaliable retained earnings assume a 25% tax bracket. their after-tax cost of referred stock is:
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