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Question 2 10 points Save A Rewn's Botation Reuven Corp is undergoing a major expansion. The expansion will be financed by Issuing new 12 year

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Question 2 10 points Save A Rewn's Botation Reuven Corp is undergoing a major expansion. The expansion will be financed by Issuing new 12 year $1.000 par 7% semiannual coupon bonds. The market price of the bonds is 150 a expense on the new bonds will be 570 per bond. What is the pre-tax cost of debt for the newly.issued bonds? e 791% 8 24% 8.779 00 9.18% 10 points are Answer Question 3 inf lytation costs o A company has common stock that can be sold for $31.54 per share. The stock paid a dividend at the end of last year of $3.57 Dividends are expected to grow an annual rate of associated with the sale of stock equal $2.26 per share What is the corporation's cost of external equity? Submit your answer as a percentage and round to two decimal places t Question of 10 10 points Save Ans Reuven Corp is undergoing a major expansion The expansion will be financed by suing new 12 year $1.000 par 7% semiannual coupon bonds. The market price of the bonds expense on the now bonds will be 570 per bond What is the pre-tax cost of debt for the newly issued bonds? 7.91% 90 each. Reuven's Rotation 8245 877% 9 18%

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