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The Yellomlond coa bond outstanding that matures in 10 years carries a 8 percent coupon, and pays interest annually. The bond has a market value

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The Yellomlond coa bond outstanding that matures in 10 years carries a 8 percent coupon, and pays interest annually. The bond has a market value of $1,100. The company has a corporate tax rate of 40 percent. What is the pre-tax cost of debt (Ro) 3.30% 40 3005 The 6 percent preferred stock of Snowmobiles, Inc. is currently selling for $75 per share. If the par value is $100, what is the cost of preferred stock to the firm? 6:00 7.505 8.00% 12 50% The Shoe Co. has a stock bota of 0.4. The risk-fron rate of return is 6 percent and the expectad return on the market is 10 percent. What is the cost of common equity based on the CAPM/SML approach? 750% 1000% 12 40% 16.00%

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