A. A bond that has $1,000 par value (face value) and a contract or coupon interest rate of 7 percent. A new issue would have a fostation cost of 6 percent of the $1,110 market value. The bonds mature in 12 years. The firm's average tax rate is 30 percent and its marginal tax rate is 30 cercant. b. A new common stock issue that paid a $1.50 dividend last year. The par value of the stock is $15 and earnings per share have grown at a rate of 12 percent per year. This growth rate is expected to continue into the foreseeable future. The company maintains a constant dividend-earrings ratio of 31 percent. The price of this stook is now $2 but 7 percent firtation costs and anticipated. c. Internal common equity when the current market price of the common stock is $46. The expected vidard this coming year should be $3.30, increasing thereafter a n annual growth rate of 9 percent. The corporation's tax rate is 36 percent. d. A preferred stock paying a vidard of 11 percent on a $110 par valve If a new issue is offered Totation costs wil be 12 percent of the current price of $175 R. A bond saling to yield 14 percent after flatation costs, but he ora adjusting for the marginal corporate tax rate of 36 percent. In othar words, 14 parant is the note that guates the not process from the bond with the present value of the future cash flows principal and interest) a. What is the firm's aller-lax cost of debt on the band? A. A bond that has $1,000 par value (face value) and a contract or coupon interest rate of 7 percent. A new issue would have a fostation cost of 6 percent of the $1,110 market value. The bonds mature in 12 years. The firm's average tax rate is 30 percent and its marginal tax rate is 30 cercant. b. A new common stock issue that paid a $1.50 dividend last year. The par value of the stock is $15 and earnings per share have grown at a rate of 12 percent per year. This growth rate is expected to continue into the foreseeable future. The company maintains a constant dividend-earrings ratio of 31 percent. The price of this stook is now $2 but 7 percent firtation costs and anticipated. c. Internal common equity when the current market price of the common stock is $46. The expected vidard this coming year should be $3.30, increasing thereafter a n annual growth rate of 9 percent. The corporation's tax rate is 36 percent. d. A preferred stock paying a vidard of 11 percent on a $110 par valve If a new issue is offered Totation costs wil be 12 percent of the current price of $175 R. A bond saling to yield 14 percent after flatation costs, but he ora adjusting for the marginal corporate tax rate of 36 percent. In othar words, 14 parant is the note that guates the not process from the bond with the present value of the future cash flows principal and interest) a. What is the firm's aller-lax cost of debt on the band