a. A $1,000 par value bond with a market price of $950 and a coupon interest rate of 7 percent. Flotation costs for a new issue would be approximately 8 percent. The bonds mature in 14 years and the corporate tax rate is 34 percent. b. A preferred stock selling for $115 with an annual dividend payment of $8. The flotation cost will be $9 per share. The company's marginal tax rate is 30 percent. c. Retained earnings totaling $4.8 million. The price of the common stock is $79 per share, and dividend per share was $9.26 last year. The dividend is not expected to change in the future. d. New common stock for which the most recent dividend was $2.64. The company's dividends per share should continue to increase at a growth rate of 7 percent into the indefinite future. The market price of the stock is currently $48; however, flotation costs of $7 per share are expected if the new stock is issued