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Individual or component costs of capital) Compute the cost of capital for the firm for the following Currently bonds with a similar credit rating and

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Individual or component costs of capital) Compute the cost of capital for the firm for the following Currently bonds with a similar credit rating and maturity as the firm's outstanding debt we selling to yield 8.47 percent while the borrowing fom's corporate tax rate percent Common stock for fem that paid a $1.00 dividend it year. The dividends are expected to grow at a rate of 43 percent per year into the foreseeable future. The price of this stock is now 033 Abond that has a $1,000 per value and a coupon interest rate of 12.8 percent with interest paid semiannually. A new issue would sell for $1,155 per bond and mature in 20 years. The firm's tax rate permane A preferred stock paying a dividend of 78 percent on a $105 par vale a new issue is offered the shares would sell for $84.21 per share The other tax cost of debt debt for the firm is (Round to two decimal places.) b. The cont of common equity for the firm E (Round to two decimal places c. The stor tax cost of Gebot for the firm is (Round to two decimal places) d. The cost of preferred stock for the fimis (Round to two decimalnim (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 8.47 percent whi b. Common stock for a firm that paid a $1.09 dividend last year. The dividends are expected to grow at a rate of 4.3 percent c. A bond that has a $1,000 par value and a coupon interest rate of 12.8 percent with interest paid semiannually. A new issu d. A preferred stock paying a dividend of 7.8 percent on a $105 par value. If a new issue is offered the shares would sell for a. The after-tax cost of debt debt for the firm is 1%. (Round to two decimal places.) b. The cost of common equity for the firm is %. (Round to two decimal places.) c. The after-tax cost of debt for the firm is %. (Round to two decimal places.) d. The cost of preferred stock for the firm is % (Round to two decimal places.) the firm for the following: nding debt are selling to yield 8.47 percent while the borrowing firm's corporate tax rate is 34 percent. s are expected to grow at a rate of 4.3 percent per year into the foreseeable future. The price of this stock is now $24.33. ent with interest paid semiannually. A new issue would sell for $1,155 per bond and mature in 20 years. The firm's tax rate is 34 percent new issue is offered, the shares would sell for $84.21 per share. laces.) Ees.) es.)

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