ABC Corp currently has an 10% coupon bond with a yield to maturity of 6%. It believes it could issue new bonds at par that would provide a similar yield to maturity. If its marginal tax rate is 25%, what is ABC's after-tax cost of debt? 4.20% 4.50% 4.90% 5.25% Question 2 2 pts JCB Inc plans to issue some $50 par preferred stock with a 7% dividend. A similar stock is selling on the market for $40. JCB must pay flotation costs of 4% of the issue price. What is the cost of the preferred stock? O 7.29% O 8.42% 9.11% 8.77%