Valley flights, inc. Has a capital structure made up of 40% debt and 60% equity and a tax rate of 30%. A new issue of $1000 par bonds maturing in 20 years can be issued with a coupon of 9% at a price of $1,098.18 with no flotation costs. The firm has no internal equity available at this time, but can issue new common stock at a price of $45. The next expected dividend for the firm is expected to grow at a constant annual rate of 5% per year indefinitely. Flotation costs on the new equity will be $7.00 per share. The company has the following independent investment projects available: