a) 12 year $1,000 TRP bonds trade at a price of $1,210 and have a coupon rate of j2 = 7%.

What is the cost of debt for TRP if the combined federal and provincial tax rate is 28%?

b) RLJ preferred shares trade for $24.60 and pay an annual dividend of $1.00 what is the cost of the preferred equity if the shares have an issuing cost of 1.50% per share

c) Esso pays an annual dividend of $2.00 (D1). If the annual growth rate is 1%,

and the shares trade for $24.00, what is the cost of common equity?