builtrite is planning on offering a $1000par value 20 years, 7% 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 7%couponn for $38 a share. Flotation cost would be $2 a share. common stock currently the stock is selling for 62$ a share and has paid a $2.82 dividend. dividends are expected to keep growing at 12% floatation costs would be $3.75 a share and Builtrite has $350,000 in retained earnings. Assume a 25% tax bracket. Their after-tax cost of internal common (retained earnings) is:

17.66%

17.09%

16.75%

16.52%