Question: Bonds: Builtrite is planning on offering a $ 1 0 0 0 par value, 2 0 year, 6 % coupon bond with an expected selling
Bonds: Builtrite is planning on offering a $ par value, year, coupon bond with an expected selling price of $ Flotation costs would be $ per bond. Preferred Stock: Builtrite could sell a $ par value preferred with a coupon for $ a share. Flotation costs would be $ a share.
Common stock: Currently, the stock is selling for $ a share and has paid a $ dividend. Dividends are expected to continue growing at Flotation costs would be $ a share and Builtrite has $ in available retained earnings.
Assume a tax bracket.
Their aftertax cost of internal common retained earnings is:
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