6&7

LL Incorporated's currently outstanding 7 percent coupon bonds have a yield to maturity of 6 percent. LL believes it could sell new bonds that would provide a similar yield to maturity. If its marginal tax rate is 32 percent, what is LL's after-tax cost of debt? Express your answer in percentage (without the \% sign) and round it to two decimal places. Your Answer: Answer Columbus Veterinary Supplies can issue perpetual preferred stock at a price of $84 a share. The issue is expected to pay a constant annual dividend of $5.65 a share. Ignoring flotation costs, what is the company's cost of preferred stock, rps ? Express your answer in percentage (without the % sign) and round it to two decimal places. Your