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Finance

please complete all questions and show work and formulas used
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30. A. A firm has issued preferred stock for $125, the same as its par value. The stock will pay a 12 percent annual dividend. If the cost of the preferred stock is 15 percent, the floatation cost must have been A. S10 B. $25 C. $5. D. $15. E. None of the above The approximate before tax cost of debt (YTM) for a 5-year, 10 percent coupon, $1,000 par value bond selling for $1,050 with a floatation cost of $50 is the same as the coupon rate. B. is lower than the coupon rate. C. is higher than the coupon rate. D. 10.5 percent. E. None of the above If a corporation has an average tax rate of 40 percent, the approximate annual, after-tax cost of debt for a 10-year, 12 percent coupon, $1,000 par value bond, selling at $1,100 with no floatation cost is A. 10 percent. 10.48 percent. 12.0 percent. 6.29 percent. None of the above 52. C. 1

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