Bands: The campany issued $80,000$ bonds, The bonds have a $$1,000$ are value with $7\mathrm{.}5\%$ coupons

Common Stock: The company has $500,000$ shares of common stock outshanding, selhng for $$41$ per share. The company beta is $125,$ the rak free sate is $2\%,$ and the market risk premim is $9\%.$

Preferred Stock: The compary issued $100,000$ shares af prefered slock Prelered stock pays a dividend of $$1$ wer share, and preferred stock sells for $$20$ per share.

What in the cost of debt betore taxes? What is the cost of debh after taxes?

$9\mathrm{.}38\%$:$7\mathrm{.}25\%$

$8\mathrm{.}99\%$;$10\mathrm{.}0\%$

$6,25\%$ : $1325\%$

$8\mathrm{.}99\%,7\mathrm{.}91\%$