(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 7.12 percent while the borrowing firm's corporate tax rate is 34 percent. b. Common stock for a firm that paid a $1.04 dividend last year. The dividends are expected to grow at a rate 5.6 percent per year into the foreseeable future. The price of this stock is now $24.31. c. A bond that has a $1,000 par value and a coupon interest rate of 12.6 percent with interest paid semiannually. A new issue would sell for $1,147 per bond and mature in 20 years. The firm's tax rate is 34 percent. d. A preferred stock paying a dividend of 6.9 percent on a $99 par value. If a new issue is offered, the shares would sell for $83.09 per share. a. The after-tax cost of debt debt for the firm is \%. (Round to two decimal places.) (Individual or component costs of capital) Compute the cost of capital for the firm for the following: a. A bond that has a $1,000 par value (face value) and a contract or coupon interest rate of 10.4 percent. Interest payments are $52.00 and are paid semiannually. The bonds have a current market value of $1,128 and will mature in 10 years. The firm's marginal tax rate is 34 percet. b. A new common stock issue that paid a $1.77 dividend last year. The firm's dividends are expected fo continue to grow at 7.6 percent per year, forever. The price of the firm's common stock is now $27.89. c. A preferred stock that sells for $141, pays a dividend of 9.5 percent, and has a $100 par value. d. A bond selling to yield 11.6 percent where the firm's tax rate is 34 percent. a. The after-tax cost of debt is \%. (Round to two decimal places.)