Use the following information for problems 46 through 49: Common stock: 1 million shares outstanding, $40 per share, $1 par value, beta = 0.8 Preferred stock: 200,000 shares outstanding, $44 per share, $3.50 per share annual dividend Debt: 10,000 bonds outstanding, $1,000 face value, 8% coupon, 20 yrs to maturity, price = 112% of par Other: Market return = 14.6%, risk-free rate = 6%, company tax rate = 28% What is this company's pretax cost of debt financing? 6.9% 4.1% 8.0% 4.8% 11.2% 48. Use the following information for problems 46 through 49: Common stock: 1 million shares outstanding, $40 per share, $1 par value, beta = 0.8 Preferred stock: 200,000 shares outstanding, $44 per share, $3.50 per share annual dividend Debt: 10,000 bonds outstanding, $1,000 face value, 8% coupon, 20 yrs to maturity, price = 112% of par Other: Market return = 14.6%, risk-free rate = 6%, company tax rate = 28% What is this company's cost for preferred stock financing? 10.2% 4.4%