Homework: Chapter 14 Homework Save Score: 0 of 4 pts 5 of 6 (0 complete) v HW Score: 0%, O of 11 pts P14-3 (similar to) E Question Help (Individual component costs of capital) Compute the cost of capital for the firm for the following: a. Abond that has a $1,000 par value (face value) and a contract or coupon interest rate of 11.5 percent. Interest payments are $57.50 and are paid semiannually. The bonds have a current market value of $1,127 and will mature in 10 years. The firm's marginal tax rate is 34 percet. b. A new common stock issue that paid a $1.77 dividend last year. The fim's dividends are expected c. Apreferred stock that sells for $146, pays a dividend of 9.5 percent, and has a $100 par value. d. A bond selling to yield 11.4 percent where the firm's tax rate is 34 percent. continue to grow at 6.5 percent per year, forever. The price of the firm's common stock is now $27.41. a. The after-tax cost of debt is %. (Round to two decimal places.) Enter your answer in the answer box and then click Check Answer. 3 parts remaining Clear All Check