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HELP ASAP (fndividual or component costs of capital) Compute the cost of capial for the firm for the following a. A bond that has a
HELP ASAP
(fndividual or component costs of capital) Compute the cost of capial 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 11.2 percent. Interest payments are $56.00 and are pald semiannualy the bonds have a current market value of $1,121 and will mature in 10 years. The frms marginal tax rate is 34 percet b. A new common stock issue that paid a $1.79 dividend last year. The firm's dividends are expected to continue to grow st 6.7 percent per year, forever. The price of the frm's common stock now $27.03. C. A preferred stock that seli for $133, pays a dividend of 9.2 percent, and has a $100 par vilue d. A bond selling to yeld 12.4 percent where the firmis tax rate is 34 percent. a. The after-tax cost of debt is 5. (Round to two decimal places.) Step by Step Solution
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