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)