9$39.90 d. $42.00 17. Reuven Corp. is undergoing a major expansion. The expansion will be financed by issuing each, Re,000 par 9.5% semiannual coupon bonds. The market price of the bonds is S1,15 pre-tax cost of debt for the newly-issued bonds? uven's flotation expense on the new bonds will be $100 per bond. What is the a. 7.49% b. 8.82% . 9.47% d. 10.24% 18. A company has common stock that can be sold for $28 per share. The stock paid a dividend at the end of last year of $3.25. Dividends are expected to grow at an annual rate of 4% indefinitely. Flotation costs associated with the sale of stock equal $2.50 per share. What is the corporation's cost of external equity? a. 18.50%. b. 17.25%. c. 16.20%. d. 14.75%. (Next Page 4 of 5