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2 of 11 (0 complete) HW Score: 0%, 0 of 11 pts Score: 0 of 1 pt b Finance P14-3 (similar to) Question Help nu

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2 of 11 (0 complete) HW Score: 0%, 0 of 11 pts Score: 0 of 1 pt b Finance P14-3 (similar to) Question Help nu (Individual or component costs of capital) Compute the cost of capital for the firm for the following: ents a. A bond that has a $1.000 par value (face value) and a contract or coupon interest rate of 11.8 percent. Interest payments are $59.00 and are paid semiannually The bonds have a current market value of $1,125 and will mature in 10 years. The firm's marginal tax rate is 34 percet. b. A new common stock issue that paid a $1.77 dividend last year. The fum's dividends are expected to continue to grow at 7.8 percent per year, forever. The price of the firm's common stock is now $27.83 c. A preferred stock that sells for $121, pays a dividend of 9.5 percent, and has a $100 par value d. A bond selling to yield 11.1 percent where the firm's tax rate is 34 percent ework Quiz/Test a. The after-tax cost of debt is % (Round to two decimal places.) Inco Enter your answer in the answer box and then click Check

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