Calculate the after-tax cost of debt under each of the following conditions:

a. Interest rate of 10%; tax rate of 0%. Round your answer to two decimal places. %

b. Interest rate of 10%; tax rate of 25%. Round your answer to two decimal places. %

c. Interest rate of 10%; tax rate of 40%. Round your answer to two decimal places. %

After-Tax Cost of Debt

LL Incorporated's currently outstanding 7% coupon bonds have a yield to maturity of 14%. LL believes it could issue new bonds at par that would provide a similar yield to maturity. If its marginal tax rate is 35%, what is LL's after-tax cost of debt? Round your answer to two decimal places.

Cost of Preferred Stock: Duggins Veterinary Supplies can issue perpetual preferred stock at a price of $67.00 per share with an annual dividend of $5.00 a share. Ignoring flotation costs, what is the company's cost of preferred stock, rps? Round your answer to two decimal places.

Cost of Preferred Stock with Flotation Costs: Burnwood Tech plans to issue some $60 par preferred stock with a 8% dividend. A similar stock is selling on the market for $63. Burnwood must pay flotation costs of 4% of the issue price. What is the cost of the preferred stock? Round your answer to two decimal places.

What is the cost of the preferred stock? Round your answer to two decimal places.

WACC

David Ortiz Motors has a target capital structure of 45% debt and 55% equity. The yield to maturity on the company's outstanding bonds is 12%, and the company's tax rate is 40%. Ortiz's CFO has calculated the company's WACC as 11.63%. What is the company's cost of equity capital? Round your answer to two decimal places. %