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(Individual or component costs of capital) Compute the costs for the following sources of financing: a. A \$1,000 par value bond with a market price of $965 and a coupon interest rate of 11 percent. Flotation costs for a new issue would be approximately 7 percent. The bonds mature in 7 years and the corporate tax rate is 21 percent. b. A preferred stock selling for $106 with an annual dividend payment of $7. The flotation cost will be $6 per share. The company's marginal tax rate is 21 percent. c. Retained earnings totaling $4.8 million. The price of the common stock is $66 per share, and dividend per share was $8.65 last year. The dividend is not expected to change in the future. d. New common stock for which the most recent dividend was $2.97. The company's dividends per share should continue to increase at a growth rate of 8 percent into the indefinite future. The market price of the stock is currently $56; however, flotation costs of $7 per share are expected if the new stock is issued. a. What is the firm's after-tax cost of debt on the bond? % (Round to two decimal places.) (NPV with varying required rates of retum) Gubanich Sportswear is considering building a new factory to produce aluminum baseball bats. This project would require an initial cash outlay of $4,000,000 and would generate annual free cash inflows of $1,100,000 per year for 7 years. Calculate the project's NPV given: a. A required rate of return of 8 percent b. A required rate of return of 10 percent c. A required rate of return of 15 percent d. A required rate of return of 18 percent a. If the required rate of return is 8 percent, the project's NPV is $ (Round to the nearest dollar.)