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Cost of preferred stock Taylor Systems has just issued preferred stock. The stock has a...

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Cost of preferred stock Taylor Systems has just issued preferred stock. The stock has a 11% annual dividend and a $75 par value and was sold at $76.50 per share. In addition, flotation costs of $6.75 per share were paid. Calculate the cost of the preferred stock. The cost of the preferred stock is %. (Round to two decimal places.) Before-tax cost of debt and after-tax cost of debt Personal Finance Problem David Abbot is interested in purchasing a bond issued by Sony. He has obtained the following information on the security: Sony Bond Coupon interest rate 8.0% Years to maturity 10 Par value $1000 Cost $920 Corporate tax rate 25% Answer the following questions: a. Calculate the before-tax cost of the Sony bond using the bond's yield to maturity (YTM). b. Calculate the after-tax cost of the Sony bond given the corporate tax rate. a. The before-tax cost of the Sony bond using the bond's yield to maturity (YTM) is %. (Round to two decimal places.) b. The after-tax cost of the Sony bond given the corporate tax rate is %. (Round to two decimal places.)

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