Joel and mike would like to start a new business selling a product new to the u. s., the peraves monotracer. joel and mike have done a considerable amount of research on this product, and think it would be successful in the u. s. however, they are still concerned about the risk of a new venture and both would like to avoid losing any personal assets. they should organize their firm as a:

The stock is currently selling for $17.75 per share, and its noncallable $3,319.97 par value, 20-year, 1.70% bonds with semiannual payments are selling for $881.00. the beta is 1.29, the yield on a 6-month treasury bill is 3.50%, and the yield on a 20-year treasury bond is 5.50%. the required return on the stock market is 11.50%, but the market has had an average annual return of 14.50% during the past 5 years. the firm's tax rate is 40%.refer to exhibit 10.1. what is the best estimate of the after-tax cost of debt? a. 6.07%