Builtrite has a capital structure of 40% common stock and 60% debt. Bonds being sold will have a $1000 par, 6% coupon rate, a 15 year maturity with a selling price of $975 and flotation costs of $15 per bond. Common stock currently sells for $30 a share and the firms expects to pay a $2.25 dividend next year. Dividends are expected to grow at a 5% annual rate and Builtrite