A Company needs to raise capital and is open for all option to avail. For Bond they can go 8%, 20 years of Bond with net proceeds of $940 for $1000. At this time there stock is trading at $100, for preferred they need to pay $13 dividend but they also have $4 of Flotation Cost. For Common Stock option they are willing to pay $4 dividend with constant growth rate of 6%.They are also open to have new common stock issue in the market with floatation cost of 10%. Please calculate before and after tax costs with tax rates of 40%, associated with all these options. (a)Bond (b)Preferred Stock (c)Additional Common equity (d)New Common equity

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