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Outstanding Bond Preferred Stock Info Common Stock Info (Annual Coupons) Preferred Divided $3.00 Current Dividend $4.00 Time to Maturity (years) 6 Current Market Price $35.00
Outstanding Bond |
| Preferred Stock Info |
| Common Stock Info |
|
(Annual Coupons) |
| Preferred Divided | $3.00 | Current Dividend | $4.00 |
Time to Maturity (years) | 6 | Current Market Price | $35.00 | Current Price | $42.00 |
Coupon Rate APR | 5.00% |
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| Expected Growth in Dividends | 3.00% |
Face Value | $1,000.00 |
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Current Market Price | $985.00 |
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Tax rate = | 25.00% |
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Based on the information in the table, what is the firm's pre-tax cost of debt?
Group of answer choices
12.81%
5.30%
3.97%
8.57%
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