(Individual or component cosis of capita) Compute the cost of the fotowing: a. A bond that has $1,000 par value (tace value) and a contract or coupon inserest rate of 7 percent. A new issue would have a footation cost of 8 percoet of the $1,115 maiket velien. The bonds mature in 11 years. The firm's average tax rete is 30 percent and its marginal tax rate is 22 percent, b. A new common stock issue that paid a $1,50 dividend last year. The par value of the stock is $15, and earnings per ahare have grown at a fate of 8 percent per year. Thin growth rate is expected to continue into the foreseeable future. The company maintains a constant dividend-earnengs ratio of 30 percent. The price of this stock is now $32, but a perceent flotation costs are anticipated. c. Internal common equity when the current market price of the common stock is $43. The expected oividend this coming year should be $3.20, increasing thereafier at an annual gronth rate of 12 . percent. The corporation's tax rate is 22 percent. d. A preferred stock peying a dividend of 8 percent on a $100 par value. If a new issue is offered, flotation costs will be 13 percent of the current price of $169. e. A bond sealing to yieid 13 percent affer fotation costs, but before adjusting for the marginal corporate tax rate of 22 percent. In other words. 13 percent is the rate that equates the net procoeds from the bond with the present value of the future cash fows (principal and interest). a. What is the fimis after-tax coot of dobt on the bond? 6. (Round to two decimal places.)