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Ferrara Company maintains a debt-equity ratio of 0.25 and has a tax rate of 40% There are no preferred shares outstanding. The WACC is 9.2%

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Ferrara Company maintains a debt-equity ratio of 0.25 and has a tax rate of 40% There are no preferred shares outstanding. The WACC is 9.2% and the cost of equity is 10%. What is the after tax cost of debt? 6.8% 10% 10% 5.52% O 6% Modena Markets has a market value of equity of $40 million and has 50,000, $1,000 face value bonds outstanding which currently trade at $1050 each. The tax rate is 40%. There are no preferred shares outstanding. The before tax cost of debt is 7% and the cost of equity is 12%. What is Modena's weighted average cost of capital? O9.78% 7% 08.53% O 9.92% 7.57% Milan Markets stock is currently selling for $32 a share. The stock has a dividend yield of 1.5%. How much dividend income will you receive per year if you purchase 500 shares of this stock? O$750 O $0.48 $2,133 $240 $960

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