$($Individual or component costs of capital$)$ Compute the cost of capital for the firm for the following:

a$.$ Currently bonds with a similar credit rating and maturity as the firm's outstanding debt are selling to yield $8\mathrm{.}81$ percent while the borrowing firm's corporate

tax rate is $34$ percent.

b$.$ Common stock for a firm that paid a $$1\mathrm{.}04$ dividend last year. The dividends are expected to grow at a rate of $5\mathrm{.}1$ percent per year into the foreseeable

future. The price of this stock is now $$25\mathrm{.}81.$

c$.$ A bond that has a $$1,000$ par value and a coupon interest rate of $12\mathrm{.}8$ percent with interest paid semiannually. A new issue would sell for $$1,148$ per bond

and mature in $20$ years. The firm's tax rate is $34$ percent.

d$.$ A preferred stock paying a dividend of $7\mathrm{.}7$ percent on a $$94$ par value. If a new issue is offered, the shares would sell for $$85\mathrm{.}09$ per share.