OD bility to return a machine readable scantron without ex Note: It is your responsibility a will be graded "AS IS Select the Best Answer Informati capital structure consists of 30% debt, 10% ion for 1 -13. Your employer asks you to evaluate the following projects. The firm's preferred and 60% common. The firm is in the 30% tax bracket Year Pro. A Pro. B Pro. c 7,600 12,000 200,000 1 4,397 7,70096,000 3,397 6,600 69,000 3 2,397 4,000 79,000 4 1,397 4,800 64,000 1, what is the before-tax cost ofdebt if it issues 10-year, 7% annual coupon bonds at par, and if the flotation cost is $50 per bond? Please note that each bond pays $70 in interest per year a.710% b. 7.53 c. 7.46 d. 7.74 e 7.90 2. What is the after-tax cost of debt? a. 6.52% b. 6.01 c. 5.13 d. 5.32 e. 5.42. 3. What is the cost of preferred stock if it is sold for $50/share, it pays a dividend of $4, and the flotation cost is $1/share? a. 8.19% b.7.59 c. 6.44 d. 6.60 e. 7.13 4. The most recent dividend on the common stock was $3, and dividends are expected to grow indefinitely at an 8% annual rate what is the cost of new common if the stock is sold for $40 per share, and if the flotation cost is $2 per share? a. 16.2% b. 14.61 c. 17.22 d. 15.44 e. 16.53