HW Seore! U U of 18 Problem 9-2 (similar to) Question Help Undividual or component costs of capital) Compute the cost of the following 2. Abond that has 51.000 par valus face value) and a contract or coupon interest rate of percent. A new ide would have a fotation cost of percent of the $1,135 market value. The bonds mature in 15 years. The femis average tax rate is 30 percent and its marginal tax rate is 24 percent b. Anew common stock issue that paid a $1.30 dividend last year. The par value of the stock is $15, and eamings per sharo have grown at a rate of 11 percent set you. This growth rate is expected to continue into the obin future. The company maintains a constant dividend carings ratio of 30 percent. The price of this stock is now $28, but cont fotation costs are anticipated Internal common equly when the current market price of the common stock is $49. The expected dividend this coming year should be $3,60, increasing thereafter at an annual growth rate of 8 percent. The orporation's tax rate is 24 percent d. Apreferred took parying a dividend of 9 percent on a $100 par value I a new issue is offered, flotation costs will be 16 percent of the current price of 5162 e. A bond selling to yield percent het lotation costs, but before adjusting for the marginal corporate tax rate of 24 percent. In other words percent is the rate that equates the net proceeds from the bond with the Den of meturn cash flows principal and interest) a. What is the firm's aar-tax cost of debt on the bond? Round to two decimal places) Enhat your www in the answer box and then click Check Answer parts Type here to search O 2 AM 12/2001 R G FE K c V B N M M