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 10.5 percent. Interest payments are $52.50 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$1.77 dividend last year. The firm's dividends are expected to continue to grow at 6.8 percent per year, forever. The price of the firm's common stock is now $27.46.

c.A preferred stock that sells for $132, pays a dividend of 9.5 percent, and has a $100 par value.

d.A bond selling to yield 11.3 percent where the firm's tax rate is 34 percent.