5 Bob's Basic Beer Co's bonds have 16 years to maturity, are currently selling in the market as above at $1025 each, the bonds have an annual coupon rate of 9.5%. The firm has a 22.50% tax rate. a) What is the pre-tax cost of debt for the firm? b) What is the after-tax cost of debt for Bob's Basic Beer? 6 Bob expects to pay a dividend of $4.75 per share at the end of the year and their expected annual growth rate is 3.75%. At their current stock price of $52.50, what is the firm's cost of common stock? 7 Bob's preferred stock pays a constant dividend of $9.95 per year. At the current market price of $95 per share, what is the firm's cost of preferred stock