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Can I get on this one it has 4 parts thank you. Save (Individual or component costs of capital) Compute the cost of capital for
Can I get on this one it has 4 parts thank you.
Save (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 yeld 736 percent while the borrowing firm's corporate tax rates 34 percent b. Common stock for a firm that paid a $1.08 dividend last year. The dividends are expected to grow at a rate of 4.6 percent per year into the foreseeable future. The price of this stock is now $25:42 c. A bond that has a $1.000 par value and a coupon interest rate of 114 percent with interest paid semiannually. A new issue would sell for $1.151 per bond and mature in 20 years. The first rate is 34 percent d. A proferred stock paying a dividend of 7.1 percent on a 5108 par value. If a new issue is offered, the shares would set for $86.67 per share a. The after-tax cost of debt debt for the firm ish (Round to two decimal places.) Step by Step Solution
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