a.Currently bonds with a similar credit rating and maturity as the firm's outstanding debt are selling to yield 8.97

percent while the borrowing firm's corporate tax rate is 34 percent.

b.Common stock for a firm that paid a $1.09

dividend last year. The dividends are expected to grow at a rate of

4.3

percent per year into the foreseeable future. The price of this stock is now

$24.82

c.A bond that has a

$1,000 par value and a coupon interest rate of 11.1%

percent with interest paid semiannually. A new issue would sell for

$1471 per bond and mature in 20 years and the firm tax rate is 34 percent.

d.A preferred stock paying a dividend of 7.8 percent on a $101 par value. IF a new issue is offered, the shares would sell for $85.59 per share.

A. The After Tax cost of debt debt for the firm is ____%

B. The cost of common equity for the firm is _____%

C. The after-tax cost of debt for the firm is ___%

D. The cost of preferred stock for the firm is ____%