The coupon rate on an issue of debt is 11%. The yield to maturity on this issue is 10%. The corporate tax rate is 37%. What would be the approximate after-tax cost of debt for a new issue of bonds? (Round your answer to 2 decimal places.)

7.75% 4.95% 6.30% 8.45%

Tobin's Barbeque has a bank loan at 8% interest and an after-tax cost of debt of 6%. What will the after-tax cost of debt be when the loan is due if a new loan is taken out yielding 12%. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

9.00% 14.05% 6.45% none of these

A firm is paying an annual dividend of $6.00 for its preferred stock which is selling for $62.00. There is a selling cost of $3.00. What is the after-tax cost of preferred stock if the firm's tax rate is 38%? (Round your answer to 2 decimal places.)

10.17% 12.32% 8.82% 11.62%

Firm X is considering the replacement of an old machine with one that has a purchase price of $60,000. The current market value of the old machine is $27,000 but the book value is $34,000. The firm's tax rate for ordinary income is 36%. What is the net cash outflow for the new machine after considering the sale of the old machine?

$27,080 $36,350 $42,830 $30,480