The Walnut Corporation is issuing a $1,000 face value bond that pays 8.5% interest annually. Investors are expected to pay $1,100 for the 12-year bond given the market rate of 7.2%. What is the AFTER-TAX cost of debt, if the firm is in the 35% tax bracket? Select one: a. 4.7% b. 5.5% c. 7.2% d. 8.5% The Elephant Corporation bonds have an 11% coupon rate. Interest is paid semi-annually. The bonds have a face value of $1,000 and will mature 8 years from now. Compute the value of the bonds, if the required rate of return is 9.5%. Select one: a. $1,197.27 e b. $1,082.75 e c. $1,098.99 d. $1,133.05 The common stock of the Gooseberry Corporation, which sells for $45, will pay a $1.50 dividend one year from now. The company dividends are expected to grow at a constant rate 8% indefinitely. What is the cost of common stock? Select one: ca. 11.60% 0 b. 11.51% c. 11.33% d. 11.79%