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Outstanding Bond Preferred Stock Info Common Stock Info (Annual Coupons) Preferred Divided 2. Current Dividend $2.00 Time to Maturity (years) 15 Current Market Price 45

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Outstanding Bond Preferred Stock Info Common Stock Info (Annual Coupons) Preferred Divided 2. Current Dividend $2.00 Time to Maturity (years) 15 Current Market Price 45 Current Price $42.00 Coupon Rate APR 5.00% Expected Growth in Dividends 2.00% Face Value $1,000.00 Current Market Price $1,240.00 Tax Rate = 40.00% Based on the information in the table, what is the firm's after-tax cost of debt? 2.99% 1.79%

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