5.

Outstanding debt of Home Depot trades with a yield to maturity of 7%. The tax rate of Home Depot is 30%. What is the effective cost of debt of Home Depot?

Group of answer choices

5.2%

7%

6.3%

4.9% 6.

Preferred stock of Ford Motors pays a dividend of $4 each year and trades at a price of $30. What is the cost of preferred stock capital for Ford?

Group of answer choices

13.3%

14.5%

15.5%

16.2%