QUESTION 3 The Yerby Company's currently outstanding bonds have a 10.7 percent coupon and a 14.7 percent yield to maturity. Yerby believes it could issue new bonds at par that would provide a similar yield to maturity. If its marginal tax rate is 45 percent, what is Yerby's after-tax cost of debt? a. 14 70% ob. 10.70% C. 4.8296 d. 5.89% e. 8.09% QUESTION 4 Eskridge Industries can issue perpetual preferred stock at a price of $77.60 a share. The stock would pay a constant annual dividend of $5.76 a share. What is the company's cost of preferred stock. I p? a. 6.9196 b. 13.47% c.5.20% d. 7.42% O e. 8.02%