Compute the costs for the following sources of financing: a. A $1,000 par value bond with a market price of $960 and a coupon interest rate of 7 percent. Flotation costs for a new issue would be approximately 7 percent. The bonds mature in 11 years and the corporate tax rate is 26 percent. b. A preferred stock selling for $104 with an annual dividend payment of $8. The flotation cost will be $6 per share. The company's marginal tax rate is 26 percent. c. Retained earnings totaling $4.8 million. The price of the common stock is $81 per share, and dividend per share was $9.27 last year. The dividend is not expected to change in the future. d. New common stock for which the most recent dividend was $3.01. The company's dividends per share should continue to increase at a growth rate of 8 percent into the indefinite future. The market price of the stock is currently $64; however, flotation costs of $9 per share are expected if the new stock is issued.