A firm recently issued $1, 000 par value, 20-year bonds with a coupon rate of 9%. Coupon interest payments will be paid semi-annually. The bonds sold at par value, but the firm paid notation costs amounting to 5% of par value. The firm has a marginal tax rate of 35%. What is the firm's after-tax cost of debt for these bonds? a) 9.0% b) 6.22% c) 5.85% d) 9.57% e) 6.37% Seminole Corporation common stock currently sells for $32 per share. The firm recently paid a dividend of $1.25 per share. Flotation costs for new external equity are $3 per share. Analysts have forecast that earnings and dividends will grow at an average annual rate of 7% percent well into the future. What is the company's cost of internal equity? a) 11.18% b) 10.91% c) 11.61% d) 12% e) 11.31% A firm has preferred stock that pays an 8 percent dividend on a $75 par value. If a new issue is offered, flotation costs will be 4 percent of the current market price of $70. The firm's marginal tax rate is 34 percent. What is the firm's cost of preferred stock financing? a) 5.9% b) 10.7% c) 8.9% d) 8.5% e) 11.9%