a. True b. False an issue a 25-year, 8.1% annual payment bond at par. Its investment bankers sell an issue of annual payment preferred stock to corporate investors acket. The corporate investors require an after-tax return on the preferred that on the bonds by 1.0%, which would represent an after-tax risk premium. in the preferred in order to issue it at par? 4. Mariano Manufacturing can issue a also stated that the company can sell an issue of annual paymire an after-tax retufter-tax risk premium. who are in the 40% tax bracket. The corpo exceeds their after-tax return on the bonds by I. What coupon rate must be set on the preferred a. 6.66% b. 6.99% c. 7.34% d. 7.71% e. 8.09% 25 yr toT 5. Preissle Company, wants to sell some 20-you me 20-year, annual interest, $1,000 par value bonds. Its stock sells d have 75 warrants attached to it, each exercisable into one share of for $42 per share, and each bond would have 3 stock at an exercise price of $47. The firm's straight bonds yield 10%. Each warrant is expected to have a market value of $2.00 given that the stock seris the stock sells for $42. What coupon interest rate must the company set on the bonds in order to sell the bonds-with-warrants at par? a. 7.83% b. 8.24% c. 8.65% d. 9.08% e. 9.54%