The before tax cost of debt is: 6.50% 6.85% 4.53% 5.91% 3.04% The after...
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The before tax cost of debt is: 6.50% 6.85% 4.53% 5.91% 3.04% The after tax cost of debt is: 2.94% 4.79% 2.08% 3.79% 3.50% The companys cost of preferred stock is: 6.05% 7.06% 7.50% 8.40% 7.22% Use the following data for the next 5 questions: Debt 50,000 bonds with a 5.0% coupon rate, payable annually, 15 years to maturity, selling at $1,050 per bond. Common Stock Preferred Stock 1,000,000 shares of common stock outstanding. The stock sells for a price of $65 per share and has a beta of 1.1 150,000 preferred shares outstanding, currently trading at $90 per share; with an annual dividend payment of $6.50 The market risk premium is 7% and the risk free rate is 2.5% 35% Market Tax Rate
The before tax cost of debt is:
6.50%
6.85%
4.53%
5.91%
3.04%
The after tax cost of debt is:
2.94%
4.79%
2.08%
3.79%
3.50%
The companys cost of preferred stock is:
6.05%
7.06%
7.50%
8.40%
7.22%
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