25. If expected dividends grow at 6% and the appropriate discount rate is 8%, what is the value of a stock with an expected dividend one year from now of $2.35? (Round your answer to 2 decimal places.)

Multiple Choice

• $118.50

• $117.50

• $58.75

• $176.25

26. Tobin's Barbeque has a bank loan at 10% interest and an after-tax cost of debt of 6%. What will the after-tax cost of debt be when the loan is due if a new loan is taken out yielding 12%. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Multiple Choice

• 4.65%

• None of these options are true.

• 12.25%

• 7.20%