69

Use the following data for the next 5 questi Debt 32,000 bonds with a 5.0 coupon rate, payable annually, 15 year to maturity, selling at $1,050 per bond Common Stock 780,000 shares of common stock outstanding. The stock sells for a price of $76 per share and has a beta of 1.09. Preferred Stock 297,000 preferred share: outstanding, currently trading at $67.511 per share; with an annual dividend payment of $8.11, Market The market risk premium is 23% and the risk free rate is 4% Tax Rate 29% What is the before tax cost of debt (Ra)? (Answer as a percentage and round to 2 decimals) Select one: a. 1.71% b. 6.14 % C. 4.53 % d. 1.45% e. 7.90 %