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 expectecd 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 internal common (retained earnings) is:

20.62%

19.96%

19.56%

19.29%