Cousin Berta Invested $120,000 twelve years ago at 16 percent, compounded quarterly. a. How much has she accumulated? (Use a Financial calculator to arrive at the answer. Round the final answer to the nearest whole dollar.) Future value b. What is her effective annual interest rate (rate of return)? (Use a Financial calculator to arrive at the answer. Round the final answer to 2 decimal places.) Effective annual Interest rate % Yield Corporate tax rate Cost of debt a 8.5% 30% b 18.0% 44% 10.0% 50% Calculate the aftertax cost of debt under each of the following conditions. (Do not round Intermediate calculations. Round the final answers to 2 decimal places.) dhe dhe de The treasurer of Sutton Security Systems is asked to compute the cost of fixed Income securities for her corporation. Even before making the calculations, she assumes the aftertax cost of debt is at least 6 percent less than that for preferred stock. Debt can be issued at a yield of 8.4 percent, and the corporate tax rate is 40 percent. Preferred shares will be priced at $57 and pay a dividend of $5.80. The flotation cost on the preferred stock is $5. (Do not round Intermediate calculations. Round the final answers to 2 decimal places.) a. Compute the aftertax cost of debt. Aftertax cost of debt % b. Compute the aftertax cost of preferred stock. Aftertax cost of preferred stock % c. Based on the facts given above, is she correct? O Yes O NO