QUESTION 6 A company has a cost of debt of 6.2%, a cost of equity of 11.2%, and a cost of preferred stock of 8%. The firm has 55,000 shares of common stock outstanding at a market price of $54 a share. There are 10,000 shares of preferred stock outstanding at a market price of $58 a share. The bond issue has a total face value of $3,200,000 and sells at 98% of face value. The tax rate is 25%. What is the weighted average cost of capital for the company? O 8.46% O 8.32% O 8.10% O 7.97% O 7.85% QUESTION 7 A company has just set next year's dividend at $5.25 a share. The company also announced that all future dividends will increase by 5.5% annually. What is the maximum amount you should pay to purchase a share of the company's stock if your goal is to earn a 14% rate of return? O $60.82 $61.76 $62.35 $63.48 $64.29