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(Individual er component costs of capital) Computo the cost of captal for the frm for the following: a. Curmity bonts wit s simiar credt rating

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(Individual er component costs of capital) Computo the cost of captal for the frm for the following: a. Curmity bonts wit s simiar credt rating and maturity at the firmis outstanding debt are soling to yield 8.37 percent while the bomowing flem's corporate tax cate is 34 percert. a. A pretleriod took paying a dividend of 7.6 percent on a 5100 par value. If a new issue is olesed, the sharer would wel for 5845 per share. 34 percerk. a. The mhantax toet ef debt debt for the firm is of. Round to two decimal placec) (individual or component costs of capital) Compule the cost of captal for the frm for the following 1. Curwerty bonds with a simlar credt rating and maturity as the frmis outstancing debt are selling so yeld B.37 percent while the becrowng firm's corporate tax rate is 34 percent. b. Common stock flor a Grm that paid a $1 og dividend last yeac. The dividends are expected to grow at a rase of 4.1 percent per year into the foreseeable future. The price of this stock is now $25.31 c. A bond that has a 51.000 par value and a cougon interest rate of 11.1 percent with interost paid temiannuaty. A new issue would sell for $1,155 per bond and mature in 20 years. The firmis tax rate is 34 percent d. A pretered sook payeng a dividend of 7.6 pecoent on a $100 par value. If a new issue s oflered, the thave would sell for $04.57 per share a. The aftertax cont of debt debt for the firm is 4. (Round to two oedimal places)

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