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answer questions A through D as show in the first photograph by using the information from the second photograph a. The after-tax cost of debt

answer questions A through D as show in the first photograph by using the information from the second photograph image text in transcribed
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a. The after-tax cost of debt is 6.12%. (Round to two decimal places.) b. The cost of common equity is 14.76%. (Round to two decimal places.) c. The cost of preferred stock is b. (Round to two decimal places.) d. The after-tax cost of debt is 7.52%. (Round to two decimal places.) (Individual or component costs of capital) Compute the cost of capital for the firm for the following: a. A bond that has a $1,000 par value (face value) and a contract or coupon interest rate of 10.3 percent. Interest payments are $51.50 and are paid semiannually. The bonds have a current market value of $1,121 and will mature in 10 years. The firm's marginal tax rate is 34 percet. b. A new common stock issue that paid a $1.82 dividend last year. The firm's dividends are expected to continue to grow at 6.3 percent per year, forever. The price of the firm's common stock is now $27.07. c. A preferred stock that sells for $139, pays a dividend of 9.7 percent, and has a $100 par value. d. A bond selling to yield 11.9 percent where the firm's tax rate is 34 percent

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