Builtrite is planning on offering 1000par value 20 years 5


Builtrite is planning on offering a $1000par value 20 years, 5% 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 5%couponn for $38 a share. Flotation cost would be $8 a share. common stock currently the stock is selling for 62$ a share and has paid a $5.82 dividend. dividends are expected to keep growing at 11% floatation costs would be $3.75 a share and Builtrite has $350,000 in available retained earnings. Assume a 40% tax bracket. Their after-tax cost of internal common(retained earings) is:

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Financial Management: Builtrite is planning on offering 1000par value 20 years 5
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