The company has 50,000 bonds with a 5% coupon rate paid annually. All the bonds will mature in 15 years and are currently selling at $1,050 per bond. The company also has 1,000,000 shares of common stock outstanding in the market. The stock sells at $65 per share and has a beta of 1.1. Further, there are 150,000 shares of preferred stock outstanding with each share trading at $90. The preferred stock pays an annual dividend of $6.50 per share. The firm pays a tax rate of 35%. The market risk premium is 7% and the risk free rate is 2.5%. What is the cost of preferred stock for the company? a. 8.40% b. 6.05% Oc 7.22% d. 7.06% The company has 50,000 bonds with a 5% coupon rate paid annually. All the bonds will mature in 15 years and are currently selling at $1,050 per bond. The company also has 1,000,000 shares of common stock outstanding in the market. The stock sells at $65 per share and has a beta of 1.1. Further, there are 150,000 shares of preferred stock outstanding with each share trading at $90. The preferred stock qays an annual dividend of $6.50 per share. The firm pays a tax rate of 35%. The market risk premium is 7% and the risk free rate is 2.5%. What is the after tax cost of debt for the company? a. 2.94% O b. 4.79% O c. 3.50% d. 2.08% The stock has an expected return of 20%. The risk-free rate is 3%. The market expected return is 10%. What is the systematic risk (beta) of the stock? O a. 3.33 Ob.243 Oc 2.86 O d. 1.71