Incorporated's current capital structure is made up of 140,000, 7.5%, semi-annual long-term bonds with a par value of $1,000 each. The bonds have 15 years to maturity and currently sell for 114% of par. Driven also has 5%, 250,000 preferred shares outstanding and 8.5 million common shares outstanding. The common stock currently sells for $34 per share and has a beta of 1.25. The preferred shares currently sell for $91 per share and the T-bill is currently yielding 4%. The market risk premium is 7.5% and the corporate tax rate is 35%. What is the after tax cost of debt (rounded to two (2) decimal places)? What is the cost of preferred stock (rounded to two (2) decimal places)? What is the cost of equity (rounded to two (2) decimal places)? What is the market value of debt? $ What is the market value of common equity? $ Chat with us