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 11.7 percent. Interest payments are $58.50 and are paid semiannually. The bonds have a current market value of $1,123 and will mature in 10 years. The firms marginal tax rate is 34 percent.

b. A new common stock issue that paid a $1.85 dividend last year. The firms dividends are expected to continue to grow at 7.4 percent per year, forever. The price of the firms common stock is now $27.56.

c. A preferred stock that sells for $120, pays a dividend of 8.3 percent, and has a $100 par value.

d. a Bond selling to yield 12.6 percent where the firms tax rate is 34 percent.

a. The after-tax cost of debt is ____% (Round to two decimal places)

b. The cost of common equity is ____% (Round to two decimal places)

c. The cost of preferred stock is ____% (Round to two decimal places)

d. The after-tax cost of debt it ____% (Round to two decimal places)