Common Stock a. b. c. d. 11.00% 11.90% 12.20% 12.05% 57. Determine the (after-tax) component cost of a $50 million debt issue that the Mattingly Corporation is planning to place with a large insurance company Assume the company is subject to a 40% tax rate. This long-term debt issue will yield 12% to the insurance company a. 4.8% b. 7.2% . 12.0% d. none of the above 58. Calculate the cost of preferred stock for Ohio Valley Power Company, which is planning to sell $100 million of $3.25 cumulative preferred stock to the public at a price of $25 per share. Flotation costs are $1.00 per share. Ohio Valley has a marginal income tax rate of 40%. a. b. c. d. 13.0% 7.8% 8.12% 13.54%