The annual expenses associated with the issuance of bonds amount to $14.375 million, which includes $8.125 million in interest payments and $6.25 million in principal repayments. In addition to this, there are other costs such as dividends and underwriting fees, which add up to $7.5 million, making it the total yearly cash outlay related to the common stock issuance.

The yearly principal payments would be $6.25 million, and the annual interest payment would be $8.125 million at a rate of 6.5%. This would result in a continuous need for cash, but since bond interest payments are tax deductible, the debt’s net cost is equal to 4.225% after taxes.

In the common stock offering, the company plans to issue 7.5 million shares at a price of $17.75 per share, after deducting underwriting costs and fees. This would result in net revenues of $16.67 per share, and the company plans to pay a dividend of $1.00 per share, which would amount to a $7.5 million yearly cash expenditure.