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Debt can be issued at a yield percent, dividend of $4.40. The flotation cost on the preferred stock is $4. he corporate tax rate is 35 percen a. Compute the aftertax cost of debt. (Do not round intermediate calculations. Inpu places.) Aftertax cost of debt %

Debt can be issued at a yield percent, dividend of $4.40. The flotation cost on the preferred stock is $4. he corporate tax rate is 35 percen a. Compute the aftertax cost of debt. (Do not round intermediate calculations. Inpu places.) Aftertax cost of debt %

Financial Accounting
Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter14: Long-term Liabilities: Bonds And Notes
Section: Chapter Questions
Problem 1PEA
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Complete a,b,&c please 

1 nt Debt can be issued at a yield of 9.0 percent, and the corporate tax rate is 35 percent. Preferred stock will be priced at $56 and pay a dividend of $4.40. The flotation cost on the preferred stock is $4. rences Mc Graw a. Compute the aftertax cost of debt. (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.) Aftertax cost of debt b. Compute the aftertax cost of preferred stock. (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.) Aftertax cost of preferred stock % c. Based on the facts given above, is the treasurer correct? No, the treasurer is incorrect. O Yes, the treasurer is correct. < Prev 6 of 10 MIL MacBook Air Next > = F9 F10 F11 F12
Transcribed Image Text:1 nt Debt can be issued at a yield of 9.0 percent, and the corporate tax rate is 35 percent. Preferred stock will be priced at $56 and pay a dividend of $4.40. The flotation cost on the preferred stock is $4. rences Mc Graw a. Compute the aftertax cost of debt. (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.) Aftertax cost of debt b. Compute the aftertax cost of preferred stock. (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.) Aftertax cost of preferred stock % c. Based on the facts given above, is the treasurer correct? No, the treasurer is incorrect. O Yes, the treasurer is correct. < Prev 6 of 10 MIL MacBook Air Next > = F9 F10 F11 F12
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it say all answers above are incorrect, i need the aftertax cost of debt and the aftertax cost of preferred stock as a percent rounded to 2 decimal places.

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