3 The treasurer of Kely Bottling Company to corporation) currently has $120,000 invested in preferred stock yielding 6 percent. Ho appreciates the tax advantages of preferred stock and is considering buying $120,000 more with borrowed funds. The cost of the borrowed funds is 11 percent. He suggests this proposal to his board of directors. They are somewhat concerned by the fact that the treasurer will be paying 5 percent more for funds than the company will be earning on the investment. Kelly Botting is in a 35 percent tax bracket with dividends taxed at 15 percent . Compute the amount of the aftertax income from the additional preferred stock if it is purchased. (Do not round Intermediate calculations and round your answer to the nearest whole dollar) 155 Ahora income b. Compute the ahertax borrowing cost to purchase the additional preferred stock. (Do not round Intermediate calculations and round your answer to the nearest whole dollar) Alertas bomwgcout Should the treasurer proceed with his proposal? Yes No MC CENN 3 b. Compune the aftertax borrowing cost to purchase the additional preferred stock (Do not round Intermediate calculations and round your answer to the nearest whole dollar) Ahora bowing c. Should the treasurer proceed with his proposal? Yes No dit market interest rates and dividend yolds increme x months after purchase deonion is made will the impact of those increases be favorabile or unfavorable for the fum? Unfavorable Favorable G MacBook Pro