Question: Please help will upvote 9. Warephase Corporation has preferred stock outstanding. The stock has a 15% dividend rate. The stock's market price is $80 per

Please help will upvote
Please help will upvote 9. Warephase Corporation has preferred stock outstanding. The
stock has a 15% dividend rate. The stock's market price is $80

9. Warephase Corporation has preferred stock outstanding. The stock has a 15% dividend rate. The stock's market price is $80 per share, and its par value is $75. #new shares are issued, the form 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% b) 12.5% c) 14.4296 d) 139 e) 12.00% 10. Nine Point Industries has a capital structure of 40% debt and 60% common equity. This capital structure is expected not to change. The firm's tax rate is 34%. The firm can issue the following securities to finance capital investments: Debt: Capital can be raised through bank loans at a pretax cost of 6.4%. Also, bonds can be issued at a pretax cost of 74% Common Stock: Retained earnings will be available for investment. In addition, new common stock can be issued at the market price of $77. Flotation costs will be 53 per share. The recent common stock dividend was 55.27. Dividends are expected to 10. Nine Point Industries has a capital structure of 40% debt and 60% common equity. This capital structure is expected not to change. The firm's tax rate is 34%. The firm can issue the following securities to finance capital investments: Debt: Capital can be raised through bank loans at a pretax cost of 6.4%. Also, bonds can be issued at a pretax cost of 7,4%. Common Stock: Retained earnings will be available for investment. In addition, new common stock can be issued at the market price of $77. Flotation costs will be $3 per share. The recent common stock dividend was $5.27. Dividends are expected to grow at 5% in the future What is the cost of capital if the firm uses bonds and issues new common stock? a) 9.5596 b) 9.445 c) 7.4556 d) 8.49% 9.295

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