builtrite is planning on offering a $1000par value 20 years, 6% coupon bond with an expected selling price of $1025. flotation costs would be $55 per bond. preferred stock: Burtrite could sell a $46 par value preferred with a 6% coupon for $38 a share. Flotation cost would be $8 a share. common stock currently the stock is selling for 62$ a share and has paid a $5.82 dividend. dividends are expected to keep growing at 11%. floatation costs would be $3.75 a share and Builtrite has $350,000 in retained earnings. Assume a 40% tax bracket. Their after-tax cost of new common is:

-22.82%

-22.09%

-21.64%

-21.35%