bonds b. is planning on offering a $1000 par value, 20 year,6% coupon bond with an expected selling price of $1025. flotation costs would be $55 per bond. preferred stock: b could sell a $46 part value preferred with a 6% coupon for $38 a share. and b has 350000 in available retained earnings. assume 40% tax bracket. their after tax cost of internal common (retained earnings) is