Questions 34-39 use the following information concerning Around Town Tours: Debt: 7,500 bonds, $1000 face value with a quoted price of 97.9, 6.8 percent coupon, with 11 years to maturity. These bonds pay interest semiannually. Common stock: 284,000 shares of common stock selling for $68 per share. The stock has a beta of 1.04 and will pay a dividend of $2.62 next year. The dividend is expected to grow by 2.5 percent per year indefinitely. Preferred stock: 9,000 shares of $8 preferred stock selling at $88 per share. Market: 14.6 percent expected return, 4.1 percent risk-free rate Company: 34 percent tax rate. 34. What is the overall value of the capital structure? a. $27,446,000 b. $27,446,500 c. $26,447,500 d. $27,445,500 35. Using the Dividend Growth Model and the Capital Asset Pricing Model, what is the cost of common equity? a. 10.69 percent b. 14.60 percent c. 15.02 percent d. 6.35 percent 36. What is the cost of preferred equity? a. 9.01 percent b. 8.78 percent c. 9.09 percent d. 7.08 percent 37. What is the pre-tax cost of debt? a. 9.01 percent b. 8.78 percent c. 9.09 percent d. 7.08 percent 38. What is the after-tax cost of debt? a. 4.02 percent b. 4.67 percent c. 2.41 percent d. 7.08 percent 39. Calculate the WACC for this firm: a. 9.0 percent b. 8.7 percent C. 9.4 percent d. 9.6 percent