A. A bond that has $1,000 par value (face value) and a contract or coupon interest rate of 8%. A new issue would have a floatation cost of 8% of the $1,140 market value. The bonds mature in 15 years. The firm's average tax rate is 30 percent and its marginal tax rate is 23%. What is the firm's after-tax cost of debt on the bond?

B. A new common stock issue that paid a $1.40 dividend last year. The par value of the stock is $15, and earnings per share have grown at a rate of 11% per year. This growth rate is expected to continue into the foreseeable future. The company maintains a constant dividend-earnings ratio of 30%. The price of this stock is now $22, but 5% flotation costs are anticipated. What is the cost of external common equity?

C. Internal common equity when the current market price of the common stock is $47. The expected dividend this coming year should be $3.60, increasing thereafter at an annual growth rate of 8%. The corporation's tax rate is 23%. What is the cost of internal common equity?

D. A preferred stock paying a dividend of 9% on a $120 par value. If a new issue is offered, flotation costs will be 11% of the current price of $163. What is the cost of capital for the preferred stock?

E. A bond selling to yield 12% after flotation costs, but before adjusting for the marginal corporate tax rate of 23%. In other words, 12% is the rate that equates the net proceeds from the bond with the present value of the future cash flows (principal and interest). What is the after-tax cost of debt on the bond?