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HUILU.UI.HUPE M Score: 0 of 4 pts 5 of 8 (0 complete HW Score: 0%, 0 of 11 pts P14-3 (similar to) Question Help (Individual

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HUILU.UI.HUPE M Score: 0 of 4 pts 5 of 8 (0 complete HW Score: 0%, 0 of 11 pts P14-3 (similar to) Question Help (Individual or component costs of capital) Compute the cost of capital 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 112 percent. Interest payments are 556.00 and are paid semiannually. The bonds have a current market value of $1,120 and wil mature in 10 years. The firm's marginal tax rate is 34 percet. b. Anew common stock issue that paid a $1.84 dividend last year. The firm's dividends are expected to continue to grow at 7.3 percent per year, forever. The price of the firm's common winck is now $27 64 c. A preferred stock that sets for $129, pays a dividend of 8.4 percent, and has a $100 par value. d. A bond soling to yield 11.8 percent where the firm's tax rate is 34 percent .. The ator-tax cost of debt io %. (Round to two decimal places.)

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