Wang Co will be selling bonds to raise funds to finance a project. The bonds will have annual coupon of 10%, Face Value of $1,000 and 15 years to maturity, Bonds will sell for $1.000 each but the flotation cost will be 5%. If Wang's tax rate is 30%, the after-tax cost of bond financing, including flotation cost, will be a) 7.48% 8 b) 8.48% c) 9.48% 12 d) 10.48% 15 Oe) 11.48% Question 15 (6.6667 points) Byers Inc. will be raising $100 million to finance a project. $50 million of it will be by selling stocks. The remaining $50 million will be raised by selling bonds at par (at its face value). The bonds will have 6% annual coupon, $1000 face value and 20years to maturity. The cost of stocks is 20%. Byers Inc. pays 40% tax. Ignoring flotation costs, the weighted average cost of capital must be Assume zero flotation cost. a) 11.80%