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

answer questions A-D, as shown 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 debt for the firm is %. (Round to two decimal places.) b. The cost of common equity for the firm is 8.95%. (Round to two decimal places.) c. The after-tax cost of debt for the firm is 6.32%. (Round to two decimal places.) d. The cost of preferred stock for the firm is 8.39%. (Round to two decimal places.) (Individual or component costs of capital) Compute the cost of capital for the firm for the following: a. Currently bonds with a similar credit rating and maturity as the firm's outstanding debt are selling to yield 7.31 percent while the borrowing firm's corporate tax rate is 34 percent. b. Common stock for a firm that paid a $1.03 dividend last year. The dividends are expected to grow at a rate of 5.4 percent per year into the foreseeable future. The price of this stock is now $25.46. c. A bond that has a $1,000 par value and a coupon interest rate of 12.7 percent with interest paid semiannually. A new issue would sell for $1,154 per bond and mature in 20 years. The firm's tax rate is 34 percent. d. A preferred stock paying a dividend of 7.5 percent on a $97 par value. If a new issue is offered, the shares would sell for $86.57 per share

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