39. A corporate bond has a face value of $1,000 and a coupon rate of65%, 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% 40. Royal Mediterranean Cruise Line's common stock is selling for $62.69 per share. The last dividend was $1.75, and dividends are expected to grow ata 5% annual rate for the forseeable future. Flotation costs onnew stock sales are 7% of the selling price what is the cost of Royal's new common stock? a. 6.4990 b. 7.28% c. 8.15% d. 9.98%