(ind vidual or component costs of capitan Cornpise the cost of the foliowing. a. Abond that has $1,000 par value (tace value) and a contract or coupon interest fate of 12 percerdi A pow issue would havo a foatation cost of 8 porcent of the b. Anew cormon stock issue that pold a $130 dividend last yoar. The par valye of the stock is $15, afid earmings per share have grove at a rate of 11 percort per yoar This growth rate is expoctod to continue into the foreseeable future. The corgany mamtains a constant isvidend-earnings faso of 30 percent. The price of this stock is now $22, but 5 porcert fotasicn costs are anticipotod thereaftor at an annul growth nate of 7 percent. The corporation's tax rate is 21 porcent. that equates the not proceedis from the bond with the present value of the future cash Bows (gincipal and intorest)