1. Holdup Bank has an issue of preferred stock with a $5.89 stated dividend that just sold for $89 per share. What is the bank's cost of preferred stock?
2. Himiny's Cricket Farm Issued a 25-year, 15 percent semiannual bond 3 years ago. The bond currently sells for 98 percent of its face value. The company's tax rate is 33 percent. What is the pretax cost of debt?
3. Himiny's Cricket Farm Issued a 26-year, 14 percent semiannual bond 3 years ago. The bond currently sells for 90 percent of its face value. The company's tax rate is 33 percent. What is the aftertax cost of debt?