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(Individual or component costs of capita) Compute the costs for the following sources of financing: a. A $1,000 par value bond with a market price

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(Individual or component costs of capita) Compute the costs for the following sources of financing: a. A $1,000 par value bond with a market price of $970 and a coupon interest rate of 11 peccent. Flotation costs for a new issue would be approsimaloly 6 percont. The bonds mature in 9 years and the corporate tax rate is 35 percent. b. A preferred stock solling for $113 with an annual dividend payment of $11. The fotation cost will be $7 per share. The companys marginal tax rate is 30 porcont. c. Retained earnings totaling 348 million. The price of the common stock is $81 per share, and dividend per share was 59.84 last yoar. The dividend is not expoclod to change in the future. d. New common stock for which the most recent dividend was $3.27. The companys dividends per share should continue to increase at a growth rato of 7 porcent into the indefinite future. The markot price of the stock is curtently $51, however, folation costs of $8 per share are oxpected if the new stock is issued. a. What is the firm's after-tax cost of dobt on the bond? (Round to two decimal places.) b. What is the cost of capital foc the preferred stock? i6. (Round to two decimal placos) c. What is the cost of intarnat comernon equity? (Round to two decimal places.) d. What is tho cost of oxtornal common equity? 44 (Round to two decimal phicees)

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