The Chilly Corporation wants to issue bonds with a 9.16% coupon rate, given the current market interest rate of 6.27%, and 12 years to maturity. The firm estimates that the bonds will sell for $1,238.75. Their common stock currently sells for $30 per share. Yesterday, the Chilly Corporation paid a dividend of $4 per share, and expects the dividend to grow at a constant rate of 5% per year. The company capital structure is 40% debt and 60% common equity. The applicable corporate tax rate is 35%. Calculate the after-tax COST OF EQUITY. Select one: a. 18.33% b. 14% a 13.33% @ d. 19% The Raspberry Corporation is undergoing a major expansion. The expansion will be financed by issuing new 15-year, $1,000 FV, 9% annual coupon bonds. The yield-to-maturity on the newly-issued bonds is 8%. The market price of the bonds is $1,085.59 each. The applicable corporate tax rate is 35%. What is the pre-tax cost of debt for the newly-issued bonds? Select one: a. 5.20% b. $1,085.59 C. 8.00% d. 9.00%