What is after-tax cost of debt

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1. National Bank just issued a new 30-year, non-callable bond at par. This bond requires a coupon rate of 7% with semiannual payments and has a par value of $1,000. The tax rate is 15%. What is the after-tax cost of debt?

2. Growfast Construction has preferred stock outstanding that pays a dividend of $2.35 per year. The current market price of the preferred stock is $24. What is the cost of preferred stock to Grow Fast?

Reference no: EM132019264

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