E)Suppose given that companys tax rate is 35%, the company has Debt: 8,000 6.5% coupon bonds outstanding, OMR 100 par value, 25 years to maturity at par, selling for 106 percent of par value, what is the companys cost of debt after tax? What would be the cost of debt before tax?

F)Assume that a company has target capital structure of 60% common stock, 5 percent preferred stock, and 35% debt. Its cost of equity is 12 percent, the cost of preferred stock is 5 percent, and the cost of debt is 7 percent. The relevant tax rate is 35%. What is the companys WACC? Why the company does not use more preferred stock financing because it costs less than debt. What would you say to the president of the company?