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(Individual ar component costs of capita) Compute the costs for the following sources af financing: a. A 51.000 par value bond with a market price

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(Individual ar component costs of capita) Compute the costs for the following sources af financing: a. A 51.000 par value bond with a market price of 5980 and a coupon interest rate of 9 percent. Flotation costs for a new issue would be approaimately 8 percent. The bonds mature in 11 years and the corporate tax rate is 33 percent. b. A preferred stock selling for 5114 with an annual dividend payment of 59 . The flotation cost will be $6 per share. The company's marginat tax rate is 30 percent c. Retained earnings totaling $4.8m lifion. The price of the common stock is 581 per share, and dividend per. share was $8.83 last year. The dividend is not expected to change in the. future d. New common stock for which the most recent dividend was 52.63. The company's dividends per share should continue to increase at a growth rate of 9 percent into the indefinite future. The market price of the stock is currently 547 , however, flotation costs of 55 per share are expected if the new stock is issued. a. What is the firm's after-tax cost of debt on the bond? (Round to two decimal places) b. What is the cost of capital for the preferred stock? (Round to two decimal places) c. What is the cost of internal common equity? (Flound to two docimal places) d. What is the cost of extemal common equity

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