Question: help me with BOTH those questions please 9. Warephase Corporation has preferred stock outstanding. The stock has a 13% dividend rate. The stock's market price
9. Warephase Corporation has preferred stock outstanding. The stock has a 13% dividend rate. The stock's market price is $80 per share, and its par value is $75. If new shares are issued, the firm will pay $2 per share in flotation costs. The corporate tax rate is 21%, what is the company's cost of preferred stock financing? a) 11.54% c) 9.12% e) 12.00% b) 12.5% d) 9.74% 10. Bioplex Corporation has a capital structure of 20% debt, 10% preferred stock, and 70% equity. The firm's cost of equity is 12%, cost of preferred is 996, and the pre-tax cost of debt is 6%, if the corporate tax rate is 21%, what is the firm's cost of capital? a)9.55% c)9.80% e)8.67% b) 10.25% d) 9.97%
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