Question: ades Question 26 cussions 2 pts Modules Time AZ onor Code norlock udent ore Common stock: Currently, the stock is selling for $62 a

ades Question 26 cussions 2 pts Modules Time AZ onor Code norlock

ades Question 26 cussions 2 pts Modules Time AZ onor Code norlock udent ore Common stock: Currently, the stock is selling for $62 a share and has paid a $2.82 dividend. Dividends are expected to continue growing at 10%. Flotation costs would be $3.75 a share and Builtrite has $350,000 in available retained earnings. Assume a 25% tax bracket. Their after-tax cost of debt is: Bonds: Builtrite is planning on offering a $1000 par value, 20 year, 5% coupon bond with an expected selling price of $1025. Flotation costs would be $55 per bond. Attem 1 H Preferred Stock: Builtrite could sell a $46 par value preferred with a 5% coupon for $38 a share. Flotation costs would be $2 a share. 24 urces O 3.94% O 4.45% zer O 6.57% O 7.29% Previous

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