Wail Inc. currently has 130,000 shares of stock outstanding with a market price of $36 a share. Wail's next year's projected dividend is $4.5 and its estimated long-term growth rate is 5%. Its outstanding debt consists of 4,560 coupon bonds each with a face value of $1,000, maturity of five years, and an annual coupon rate of 9% with semi-annual payments. The bonds are traded at par. The tax rate is 40 percent. What is Wail's pre-tax cost of debt? 17.5%4.5%5%9%5.4% Wail inc. currently has 130,000 shares of stock outstanding with a market price of $36 a share. Wail's next year's projected dividend is $4.5 and its estimated long-term growth rate is 5%. Its outstanding debt consists of 4,560 coupon bonds each with a face value of $1,000, maturity of five years, and an annual coupon rate of 9% with semi-annual payments. The bonds are traded at par. The tax rate is 40 percent. What is Wail's cost of equity? \begin{tabular}{l} 5.4% \\ \hline 5% \\ \hline 17.5% \\ 12.5% \\ 9% \\ \hline \end{tabular} Wail Inc. currently has 130,000 shares of stock outstanding with a market price of $36 a share. Wail's next year's projected dividend is $4.5 and its estimated long-term growth rate is 5%. Its outstanding debt consists of 4,560 coupon bonds each with a face value of $1,000, maturity of five years, and an annual coupon rate of 9% with semi-annual payments. The bonds are traded at par. The tax rate is 40 percent. Suppose Wail wants to get rid of all its debt and become all-equity. Calculate the all equity cost of capital. 22.47%17.5%14.36%5.4%