Question 23 (3.5 points) Growing, Inc. is a firm that is experiencing rapid growth. The firm yesterday paid a dividend of $6.00. You believe that dividends will grow at a rate of 14.0% per year for three years, and then at a rate of 9.0% per year thereafter. You expect that the stock will sell for $79.68 in three years. You expect an annual rate of return of 25.0% on this investment. If you plan to hold the stock indefinitely, what is the most you would pay for the stock now? $49.82 $39.82 $55.81 $33.63 $46.02 Question 24 (3.5 points) Costly Corporation plans a new issue of bonds with a par value of $1000, a maturity of 37 years, and an annual coupon rate of 11.0%. Flotation costs associated with a new debt issue would equal 3.0% of the market value of the bonds. Currently, the appropriate discount rate for bonds of firms similar to Costly is 9.0%. The firm's marginal tax rate is 50%. What will the firm's true cost of debt be for this new bond issue? 11.34% 9.29% 4.65% 5.67% 12.74%