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Q6.If a firm’s before-tax cost of debt is 10% and the firm has a10% marginal tax rate, what is the firm’s after-tax cost ofdebt?6.5%3.5%9.0%7.9%Q7.A company has preferred stock that can be sold for $100 pershare. The preferred stock pays an annual dividend $6. Therefore,the cost of preferred stock is:4.0%5.0%6.0%10.0%Q8.Suppose your company has an equity beta of 1.5 and the currentrisk-free rate is 3.0%. If the expected market risk premium is8.0%, what is your cost of equity capital?12.3%13.0%11.1%15.0%.Q9.A stock sells for $20 per share, its last dividend(D0) was $1.00, and its growth rate is a constant 6%.What is its cost of common stock?5.3%11.0%11.3%11.6%Q10.A firm has a target capital structure of 30% debt, 20% preferredstock, and 50% common equity. The company's after-tax cost of debtis 5%, its cost of preferred stock is 8%, and its cost of retainedearnings is 12%. The firm’s marginal tax rate is 21%. What is thecompany's weighted average cost of capital if retained earnings areused to fund the common equity portion?8.0%9.50%9.10%8.79%