need help with b

Saved Check my work mode : This shows what is correct or incorrect for the work you have completed so far. It does not indicate completion Help Sevec Return The treasurer of Kelly Bottling Company (a corporation) currently has $350,000 invested in preferred stock yielding 8 percent. He appreciates the tax advantages of preferred stock and is considering buying $350,000 more with borrowed funds. The cost of the borrowed funds is 9 percent. He suggests this proposal to his board of directors. They are somewhat concerned by the fact that the treasurer will be paying 1 percent more for funds than the company will be earning on the investment. Kelly Bottling is in a 30 percent tax bracket with dividends taxed at 10 percent. a. Compute the amount of the aftertax income from the additional preferred stock if it is purchased. (Do not round intermediate calculations and round your answer to the nearest whole dollar.) Answer is complete and correct. Aftertax income 27,150 b. Compute the aftertax borrowing cost to purchase the additional preferred stock (Do not round intermediate calculations and round your answer to the nearest whole dollar.) C . 1 not in Answer is complete and correct. Aftertax income $ 27.150 b. Compute the aftertax borrowing cost to purchase the additional preferred stock. (Do not round intermediate calculations ar round your answer to the nearest whole dollar.) Answer is complete but not entirely correct. Aftertax borrowing cost S 8,505