Question 30 Outstanding Bond Preferred...
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Finance
Question 30
| Outstanding Bond |
| Preferred Stock Info |
| Common Stock Info |
|
| (Annual Coupons) |
| Preferred Divided | $3.00 | Current Dividend | $4.00 |
| Time to Maturity (years) | 6 | Current Market Price | $35.00 | Current Price | $42.00 |
| Coupon Rate APR | 5.00% |
|
| Expected Growth in Dividends | 3.00% |
| Face Value | $1,000.00 |
|
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|
|
| Current Market Price | $985.00 |
|
|
|
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| Tax rate = | 25.00% |
|
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Based the information in the table, what is the firm's after-tax cost of debt?
Group of answer choices
5.30%
5.27%
3.97%
1.39%
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