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6. Compute the approximate before-tax cost of debt. Par=$1000, coupon rate =5%, maturity =10 years, PV=$800. Tax rate is 20%. a. 5% b. 6% c.
6. Compute the approximate before-tax cost of debt. Par=$1000, coupon rate =5%, maturity =10 years, PV=$800. Tax rate is 20%. a. 5% b. 6% c. 7% d. 8% 7. Preferred stock pays a $3 dividend. If the current price is $30, what is the cost of issuing preferred stock? The firm's tax rate is 20%. a. 8% b. 10% c. 12.5% 6. Compute the approximate before-tax cost of debt. Par=$1000, coupon rate =5%, maturity =10 years, PV=$800. Tax rate is 20%. a. 5% b. 6% c. 7% d. 8% 7. Preferred stock pays a $3 dividend. If the current price is $30, what is the cost of issuing preferred stock? The firm's tax rate is 20%. a. 8% b. 10% c. 12.5%
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