Hello sir. How to compute the cost when the bond that has a RM1,000 par value and a contract or coupon interior rate of 12%. So, the new issue would have a flotation cost of 6% of the RM1,125 market value. The bonds mature in 10 years. The firm's average tax rate is 30% and its marginal tax rate is 34%. Hence how to find when a new common stock issue paid a RM1.75 dividend last year. The par value of the stock is RM15, and earnings per share have grown at a rate of 8% per year. This growth rate is expected to continue into the foreseeable future. The company maintains a constant dividend/earnings ratio of 30%. The price of this stock is now RM28, but 5% flotation costs are anticipated.