23. Jones Company has a target capital structure of 25% debt 10% preferred stock, and 65% common equity. The company's after-tax cost of debt is 4%, its cost of preferred stock is 7%, its cost of retained earnings is l 196, and its cost of new common stock is 14%. The company stock has a beta of 1.7 and the company's marginal tax rate is 35%. What is the company's weighted average cost of capital if retained earnings are used to fund the common equity portion? a. 7.70% b. 8.85% c. 9.45% d. 10.20% 24. A corporate bond has a face value of $1,000 and a coupon rate of 65%, paid semiannually. The bond matures in 18 years and has a current market price of $911. If the corporation sells more bonds it will incur flotation costs of $64 per bond. If the corporate tax rate is 35%, what is the after-tax cost of debt capital? a. 5.29% b. 6.49% c. 7.75% d. 8.01% 25. As part of your pension, you will receive $3,363 at the end of each month for the next 13 years starting next month. If you can invest these funds at an interest rate of 65% compounded monthly, how much is your pension worth today? a. $277,695.01 b. $283,323.20 c. $353,557.05 d. $392,157.76 26. How much money must be deposited at the end of each year into a bank account yielding 6.8% (compounded annually) in order to have S27.000 at the end of 12 years? a. $1,527.21 b. $1,393.16 c. $1,261.04 d. $1,119.07