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The approximate after-tax cost of debt for a 20 year, 7 percent, $1,000 par value bond selling at $1160 (assume a marginal tax rate of
The approximate after-tax cost of debt for a 20 year, 7 percent, $1,000 par value bond selling at $1160 (assume a marginal tax rate of 40 percent) is 4.43 percent O 7.39 percent O 5.64 percent 3.39 percent QUESTION 27 Calculate the cost of preferred stock from the following information: Selling Price $116.95/share (before flotation cost), Flotation cost = 5%, Dividend Rate = 10%, Par $100 9 percent 10 percent 11 percent O 12 percent
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