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Andividual or component conts of capitan) You have just been hired to compute the cost of capital for debt, peefarred stock, und common stock for

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Andividual or component conts of capitan) You have just been hired to compute the cost of capital for debt, peefarred stock, und common stock for the Mindflex Corporation. a. Cost of debt: Since Mindfert bonds do not trade very frequenty, you have decided to ute 907 petcent as your cost of debt, which is the yield to maturity on a portfolio of bonds with a similar crodit riting and maturity as Mindtiex's outstanding debt in addion, Windtex faces a corporate tax tate of 34 percent: b. Cout of common equity: Mindfex's common stock paid a 51.21 dividend last yoar. In addilon, Mindfexts dividends are orowing at a rate of 5.3 percont per year and this growth rate is oxpectod

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