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Use the following information for the next 5 questions: The company has 100,000 bonds with an 12% coupon rate, payable semiannually, 20 years to maturity,

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Use the following information for the next 5 questions: The company has 100,000 bonds with an 12% coupon rate, payable semiannually, 20 years to maturity, selling at $1,125 per bond. The company also has 1,500,000 shares of common stock outstanding. The stock sells for a price of $65 per share and has a beta of 1.5. Additionally, the company has 200.000 preferred shares outstanding, currently trading at $115 per share with an annual dividend payment of $8.75. The market risk premium is 8% and the risk free rate is 2.5%. The tax rate is 21%. What is the before-tax cost of debt? 13.1992% 15.0000% 14.9009% 15.1085% 10.4935% What is the after-tax cost of debt? 10.4274% O 11.9357% O 11.7717% 8.2899% O 11.8500% What is the cost of preferred stock? 0 7.6087% O 10.1087% 14.5000% 0 10.5000% O 11.4130% What is the cost of common stock? O 12.00% 0 7.61% 0 14.50% 0 11.75% 0 10.75% What is the weighted average cost of capital? 0 13.1970% O 10.8213% O 10.2883% O 11.9381% O 10.7994%

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