Compute the cost of capital for the firm for thefollowing:

a.Currently bonds with a similar credit rating and maturity as thefirm's outstanding debt are selling to yield 8.91% while the borrowingfirm's corporate tax rate is 30%.

b.Ordinary shares for a firm that paid a $1.08 dividend last year. The dividends are expected to grow at a rate of 4.3% per year into the foreseeable future. The price of these shares is now $24.01.

c.A bond that has a $1,000 face value and a coupon interest rate of 11.2% with interest paidsemi-annually. A new issue would sell for 1,148 per bond and mature in 20 years. Thefirm's tax rate is 30%.

d.A preference share paying a dividend of 6.2% on a $110 face value. If a new issue isoffered, the shares would sell for $83.24 per share.

A. Theafter-tax cost of debt debt for the firm is

b. The cost of ordinary shares for the firm is

c. Theafter-tax cost of debt for the firm is

d. The cost of preference shares for the firm is