Collins Corporation is planning to sell a new $1,000 face value, 11% coupon, 20-year bond issue to investors who require a 11% rate of return. There would be no flotation cost, and Collins pays income taxes at a 21% rate. What is the cost of the new issue? O a. 11.00% b.21.00% c. 8.69% d. 2.31% QUESTION 14 The difference between a required rate of return and the cost of that capital source is: a. The cost of the capital source includes more information than the required rate of return. b. The cost of the capital source does not include the required rate of return in its calculation. c. The required rate of return includes more information than the cost of the capital source.. d. There is no difference. QUESTION 15 What is the internal rate of return (IRR) of the capital budgeting project with the following cash flows? Year 0 Years 1.5 Year 5 ($ 120,000) $ 35,000 $ 5,000 a. 13.58% b. 11.76% c. 14.05% d. 14.93%