Builtrite Auto has preferred stock shares outstanding that pay an annual dividend of $4 and are currently selling for $68 a share. What is the after-tax cost of preferred stock if the flotation cost for new shares is 5% and Builtrite is in the 34% marginal tax bracket? 3.88% 5.88% 06.19% 4.0 Question 2 2 pts Builtrite Furniture is considering sells bonds for a plant expansion. Currently, Builtrite believes that it could sell 20 year maturity, $1000 par value, 51/8% coupon bonds after flotation costs for $1060. If Builtrite is in the 34% marginal tax bracket, what is the after-tax cost for the bonds? 4.64% 3.44% 3.06% 5.21%