21 Question 27 (3.33 points) Novartis Industries sold a 20 year $1.000 face value bond with a 12 percent coupon rate. Interest is paid annually. After flotation costs. Novartis received $890 per bond. Compute the after-tax cost of debt for these bonds if the firm's marginal tax rate is 25 percent. 2 10.22% 30 0 11.74% 8.81% 13.63% Question 28 3.33 points) Calculate the after-tax cost of preferred stock for Regeneron Corporation, which is planning to sell $440 million of $8.50 cumulative preferred stock to the publicata price of $78 per share. Flotation costs are $& per share. Regeneron has a marginal income tax rate of 40% 0654% 12.14% 7.29% 10.89%