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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

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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 Current Price $42.00 Coupon Rate APR 5.00% Expected Growth in 3.00% Dividends Face Value $1,000.00 Current Market Price $985.00 Tax rate - 25.00% Based on the information in the table, what is the firm's pre-tax cost of debt? 12.81% 8.5796 O 5.30% O 3.97%

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