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25 p QUESTION 26 Shown below is capital cost information for Microbing Companiom, cal the following cost of debt Rd) 2. cost of preferred stock

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25 p QUESTION 26 Shown below is capital cost information for Microbing Companiom, cal the following cost of debt Rd) 2. cost of preferred stock (Rou 1 out of common equity Roel Show your work 1. Miami Publishing Capital Costs Miami Publishing can raise capital under the following conditions: Bonds can be sold with a par value of 51,000 and a coupon rate of 12% per year, paid semiannually. The bonds will be non-callable with 15 years to maturity. The current market price for identical bonds is $975. 2 Miami Publishing does not issue preferred stock Common stock could be sold. The most recent semiannual dividend paid by Miami was Do - $3.75 per share. The company's dividends are expected to grow at rate of 6% per year for the foreseeable future. The current price of Miami common stock is $175 per share For the toolbar, ALTOSOPIO ALTAFF Mad 3

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