PLEASE SHOW THE STEPS IN THE MCQ AND THE OTHER QUESTIONS

c) Tangshan Mining is considering issuing long-term debt. The debt would have a 30 year maturity and a 12 percent coupon rate and make semiannual coupon payments. In order to sell the issue, the bonds must be underpriced at a discount of 2.5 percent of face value. In addition, the firm would have to pay flotation costs of 2.5 percent of face value. The firm's tax rate is 33 percent. Given this information, the after- tax cost of debt for Tangshan Mining would be

A) 6.38%.

B) 12.76%.

C) 4.98%.

D) 8.55%.

d)A firm has issued preferred stock at its $125 per share par value. The stock will pay a $15 annual dividend. The cost of issuing and selling the stock was $4 per share. The cost of the preferred stock is

A) 7.2 percent.

B) 12 percent.

C) 12.4 percent.

D) 15 percent.

Calculate the yield to maturity (ytm) for the following bonds:

Bond 1: Par value $1000, seven years to maturity, coupon rate 6% (Market price =990)

Bond 2: Par value $1000, fifteen years to maturity, coupon rate 6.5% (Market price=1111)

Bond 3: Par value $2000, thirty years to maturity, coupon rate 7.5%( annual and semi-annual) (Market price=2010)

Stock A has a required return of 10 percent. Its dividend is expected to grow at a constant rate of 7 percent per year. Stock B has a required return of 12 percent. Its dividend is expected to grow at a constant rate of 9 percent per year. Stock A has a price of $25 per share, while Stock B has a price of $40 per share. What is the required return of each one of them and which one would you choose?