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Question 2 6 Points The following information and questions pertain to the Slim Jim Nutrition Company The Slim jim Nutrition Company has a preferred stock

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Question 2 6 Points The following information and questions pertain to the Slim Jim Nutrition Company The Slim jim Nutrition Company has a preferred stock that pays a 55. dividend each year, and currently sells for $64,50. The company's marginal tax rate is 40 percent. The market price of the Slim jim Nutrition Company's common stock is $46. The dividend to be paid at the end of the following year is $4.6 per share and is expected to continue to grow indefinitely at a constant growth rate of 6% The Slim jim Nutrition Company's has a before-tax cost of debt ki = 10%. Its tax rate is 40% a) Based on the information about the Slim Jim Nutrition Company, what is the cost of preferred stock. kps, for Slim Jim Nutrition Company? SHOW YOUR CALCULATION (2 marks) b) Based on the information about the Slim Jim Nutrition Company's common stock.calculate the cost of this common stock, SHOW YOUR CALCULATION (2 marks) c) Based on the information about the Slim Jim Nutrition Company's before-tax cost of debt, ki and its tax rate. what is Slim jim Nutrition Company's after-tax cost of debt, kd? SHOW YOUR CALCULATION 12 marks) metromater

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