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1 4 - 6 . ( Computing individual or component costs of capital ) Compute the cost of capital for the firm for the following:

14-6.(Computing individual or component costs of capital) Compute the cost of capital for the firm for the following:
a. Currently, new bond issues with a credit rating and maturity similar to those of the firm's outstanding debt are selling to yield 8 percent, while the borrowing firm"s corporate tax rate is 34 percent.
b. Common stock for a firm that paid a $2.05 dividend last year. The dividends are expected to grow at a rate of 5 percent per year into the foresecable future. The price of this stock is now $25.
c. A bond that has a $1,000 par value and a coupon interest rate of 12 percent with interest paid semiannually. A new issue would sell for $1,150 per bond and mature in 20 years. The firm's tax rate is 34 percent.
d. A preferred stock paying a 7 percent dividend on a $100 par value. If a new issue is offered, the shares would sell for $85 per share.
PALGM
scippert a
For part bohange market price to $32, dividend paid last year to $2.50 and the growth rate to 4%
For part conange the coupon rate to 6% and the tax rate to 28%
For part d change the dividend percentage to 8% and the price the shares would sell for to $110 per share
B.
\table[[Polloum pricel,$32
Please solve for Excel, also not sure if I did part A correctly
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