15) Use the following data for the next 5 questions: 15a-15e

Debt	25,000 bonds with a 5.0% coupon rate, payable annually, 15 years to maturity, selling at $1,050 per bond.
Common Stock	623,000 shares of common stock outstanding. The stock sells for a price of $93 per share and has a beta of 1.85.
Preferred Stock	225,000 preferred shares outstanding, currently trading at $82.22 per share; with an annual dividend payment of $7.36,
Market	The market risk premium is 21% and the risk free rate is 2%
Tax Rate	25%

15a) What is the after tax cost of debt (R_d)? (Answer as a percentage and round to 2 decimals)

Select one:

a. 2.08 %

b. 5.42 %

c. 5.27 %

d. -0.46 %

e. 3.40 %

15b) What is the cost of common stock (R_E)? (Answer as a percentage and round to 2 decimals)

Select one:

a. 42.87 %

b. 36.99 %

c. 42.72 %

d. 40.85 %

e. 39.53 %

15c) What is the before tax cost of debt (R_d)? (Answer as a percentage and round to 2 decimals)

Select one:

a. 3.21 %

b. 4.53 %

c. 6.55 %

d. 0.67 %

e. 6.40 %

15d) What is the cost of preferred stock (R_p)? (Answer as a percentage and round to 2 decimals)

Select one:

a. 8.95 %

b. 7.63 %

c. 5.09 %

d. 10.97 %

e. 10.82 %

15e) What is the weighted average cost of capital? (Answer as a percentage and round to 2 decimals)

Select one:

a. 27.40 %

b. 25.53 %

c. 27.55 %

d. 21.67 %

e. 24.21 %