Use Table 9.1 below to answer questions 21 to 24. Table 9,1 A firm has determined its optimal capital structare which is composed of the following sources and target market value peoportions. 5 Debe The fin can sell a 12-year, 51,000 par value, 7 perecnt bond for 5990 . A llocatiod cos of 2 percent of the face value would be required in addition to the discount of 540 . Frefered Stock The firm has deternined in eat issoe preferred stock at $75 per ahare par $3 per share. Commoo Stock: A firm's comnve ssock is curtently selling for 518 per shace. The dividend Compected wo be paid at the cnd of the coming year is \$1.74. Its dividend payments have beea growing at a constant tase for the last four years. Four years ago, the dividend was $1.50. is is expected lat to sell, a new coemmon stokk issac mast be underpriced 51 per shase in foatation conts. Additionally, the firm's marginal tax rale is 40 pereent. 21) The firm's after-iax cost of debt is (See Table 9.1) A) 3.25 percent is) 4.6 percent C) 7.3 perseni D) 3.13 percent E) Noee of the above 22) The firn's cost of preferred soek is (Sec Tablo 9.1) A) 7.2 pereent B) 8.3 percent C) 133 percent D) 13.9 perech E) Noee of the above 23) The firm's cost of a new issue of commen stock is - See Table 9.1) A) 7 percent B) 9.08 peroent C) 13.2 perecmi D) 14.4 percent E) None of the above 24) The firm's coot of retained camings is (Soe Table 9.1) A) 102 percent B) 13.9 pereent C) 12.4 perecent D) 13.6 pereent E) None of the above 25) Which of the followiog are typical consccuences of good capital budgeting decisions? A) The firm inereases in value. A) The firm increases an value. B) The furm gains knowledge and experience that may be usefel in future decisiont. B) The furm gains knowledgo and erperichec that may be usefur in future cecisioni D) All of the above. (i) None of the above