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, 6 3/4% coupon bonds after flotation costs for $970. If Builtrite is in the 34% marginal tax bracket, what is the after-tax cost for the bonds? 7.04% 6.35% 4.65% 3.23% Question 3 2 pts Builtrite's common stock is currently selling for $76 a share and the firm just paid an annual dividend of $3.40 per share. Management believes that dividends and earnings should grow at 7% annually. Based on this, and a marginal tax rate of 34%, what is the cost of common stock (also known as the cost of retained earnings)? O 11.47% O 11.79% O 7.78% 7.57% Question 4 2 pts Builtrite's common stock is currently selling for $84 a share and the firm just paid an annual dividend of $4.60 per share. Management believes that dividends and earnings should grow at 8% annually. Since new stock would need to be sold to finance an expansion, Builtrite expects flotation costs to be 5% of the expected selling price of $84 a share. Based on this, and a marginal tax rate of 34%, what is the cost of new common stock? 13.76% 9.08% O 14.23% 9.39%