Blue Co., a firm that has 10,000 preferred outstanding shares, determined its financial break-even point at P540,000. The tax rate applicable to the firm is 50%. The dividend yield for the preferred...

Blue Co., a firm that has 10,000 preferred outstanding shares, determined its financial break-even point at P540,000. The tax rate applicable to the firm is 50%. The dividend yield for the preferred shares is 25% and these shares are trading at a price of P100. How much is the annual interest paid by Blue Co.?