Cost of Preferred Stock Tunney Industries can issue perpetual preferred stock at a price of $61.00 a share. The stock would pay a constant annual dividend of $5.00 a share. What is the company's cost of preferred stock, rp? Round your answer to two decimal places. %
After-tax Cost of Debt
The Heuser Company's currently outstanding bonds have a 8% coupon and a 12% yield to maturity. Heuser believes it could issue new bonds at par that would provide a similar yield to maturity. If its marginal tax rate is 35%, what is Heuser's after-tax cost of debt? Round your answer to two decimal places.
%