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B-1. What would be the after-tax cost of debt for a company with the following yields to maturity (YTM=interest rate company is paying in this

B-1. What would be the after-tax cost of debt for a company with the following yields to maturity (YTM=interest rate company is paying in this case) for its new bonds, if the applicable interest subsidy tax rate 20 percent? (9 pts) 1. YTM = 7% 2. YTM = 11% 3. YTM = 13% B-2. A company can sell preferred stock for $26 per share, and each share of stock is expected to pay a dividend of $2. If the flotation cost per share of stock is $0.75, what would be the estimate of the cost of capital from this source? (5 pts) B-3. One-Eyed Jacks Corporation needs money to fund a new production line of playing cards. Rio Longworth, manager of the finance department, suggests they sell preferred stock for $50 per share. They expect to pay $6 per share annual dividends. What is the estimate of the cost of preferred stock if the flotation cost is $2.25 per share? (5 pts)B-4. Twister Corporation is expected to pay a dividend of $7 per share one year from now on its common stock, which has a current market price of $143. Twisters dividends are expected to grow at 13 percent. (8 pts) a. Calculate the cost of the companys retained earnings. b. If the flotation cost per share of new common stock is $4, calculate the cost of issuing new stock

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