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a) Hospital Corporation of America (HCA)'s 12 percent coupon rate, annual payment, $1,000 par value, 30-year bonds currently sell at a price of $1,188.52. Compute

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a) Hospital Corporation of America (HCA)'s 12 percent coupon rate, annual payment, $1,000 par value, 30-year bonds currently sell at a price of $1,188.52. Compute HCA's after-tax cost of debt (K) b) HCA has preferred stock that pays a constant dividend of $15 per share. The stock currently sells for $125. If the company incurs a 3% flotation cost each time it issues preferred stock, what is the cost of preferred stock (K.)? c) The common stock of HCA is currently selling for $70 and the most recent dividend (Do) was $3.5 per share of common stock. In addition, analysts have indicated that the HCA has been growing at a constant rate of 8 percent, and this growth is expected to continue forever. What is HCA's cost of retained earnings (K.)

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