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The company has 100,000 bonds with an 12% coupon rate, payable semiannually, 20 years to maturity, selling at $1,125 per bond. The company also has

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The company has 100,000 bonds with an 12% coupon rate, payable semiannually, 20 years to maturity, selling at $1,125 per bond. The company also has 1,500,000 shares of common stock outstanding. The stock sells for a price of $65 per share and has a beta of 1.5. Additionally, the company has 200.000 preferred shares outstanding, currently trading at $115 per share with an annual dividend payment of $8.75. The market risk premium is 8% and the risk free rate is 2.5%. The tax rate is 21% 1 What is the before-tax cost of debt? 15.1085% 14.9009% 13.1992% 13.2102% O 15.0000% 2 What is the after-tax cost of debt? 10.4274% 11.7717% 11.8500% 11.9357% O 10.4360% What is the cost of preferred stock? 14.5000% O 10.5000% 114130% o 7.6087% 10.1087% 4 What is the cost of common stock? 14.50% 11.75% 10.75% O 12.00% 7.61% 5 What is the weighted average cost of capital? 11.8575% O 11.9381% 10.2883% 13.1970% O 10.7994%

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