IN 20 9 100 11 12 13 14 15 Moving to another question will save this response. >> Question 12 10 points Save Answer The company has 50,000 bonds with a 5% coupon rate paid annually. All the bonds will mature in 15 years and are currently selling at 51.050 per bond. The company also has 1,000,000 shares of common stock outstanding in the market. The stock sells at 565 per share and has a beta of 1.1. Further, there are 150,000 shares of preferred stock outstanding with each share trading at $90. The preferred stock pays an annual dividend of 56.50 per share. The firm pays a tax rate of 35%. The market risk premium is 7% and the risk free rate is 2.5 What is the after tax cost of debt for the company? a. 3.50% b.2.08 C. 2.94% d. 4.79 Moving to another question will save this response Question 12 of 15 858 AM 7/1/2020 IN 20 9 100 11 12 13 14 15 Moving to another question will save this response. >> Question 12 10 points Save Answer The company has 50,000 bonds with a 5% coupon rate paid annually. All the bonds will mature in 15 years and are currently selling at 51.050 per bond. The company also has 1,000,000 shares of common stock outstanding in the market. The stock sells at 565 per share and has a beta of 1.1. Further, there are 150,000 shares of preferred stock outstanding with each share trading at $90. The preferred stock pays an annual dividend of 56.50 per share. The firm pays a tax rate of 35%. The market risk premium is 7% and the risk free rate is 2.5 What is the after tax cost of debt for the company? a. 3.50% b.2.08 C. 2.94% d. 4.79 Moving to another question will save this response Question 12 of 15 858 AM 7/1/2020