16 Part A

part B

Company J's 8% (APR) coupon rate, semiannual payment, $1,000 par value bond matures in 10 years and sells at a price of $1081. The company's relevant tax rate is 25%. What is company J's after-tax component cost of debt (APR)? O 3.42% O 6.84% O 5.13% O 2.57% Summerhaven Inc.'s common stock is currently trading at $40 a share. The stock is expected to pay a dividend of $2 a share at the end of the year (today is the first day of the year). The dividends are expected to grow at a constant 4% per year. What is Summerhaven's cost of common equity? 05.0% O 9.2% 0.5.2% O 9.0%