Question 1: Information on Dr. Lu Bakery is shown below. Assume its tax rate is 30 percent Debt: 10,000 5 percent coupon bonds outstanding, $1,000 par value, 20 years to maturity, selling for 103 percent of par; the bonds make semiannual payments. Common stock: 255,000 shares outstanding, selling for $95 per share; beta is 1.10. Preferred stock: 1,500 shares of 5.5 percent preferred stock outstanding, currently selling for $87 per share. The par value is $100 Market: 8 percent market risk premium and 3.8 percent risk-free rate. In-class quiz Q1: Homework Unanswered What is the company's before-tax cost of debt? What is the company's after-tax cost of debt? O A 4.76%; 6.809 0 B 2.389; 1.6796 0 C 4.76 %; 3.34% Unanswered Submit In-class quiz Q2 Homework. Unanswered What is the company's cost of common stock? What is the company's cost of preferred stock? O A 12.6096;6.32% O B 3.4296;6.32% O C 12.60%; 5.5% O D 8.429; 5.5% Unanswered Submit In-class quiz Q3 Homework. Unanswered What is the company's WACC? o A 3.8396 0 B 6.5096 o C 9.83% Unanswered Submit