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(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

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(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 maturly as the firm's outstanding debt are seling to yield 8.46 percent while the borrowing firm's cerporate tax mase is 34 percent. b. Common stock for a firm that paid a $1.02 dividend last year. The dividends are expected to grow at a rale of 4.7 percent per year into the foreseeable fulure. The price of this stockis now 525.57 c. A bond that has a $1,000 par value and a coupon interest rato of 12.3 percent with interest paid somiarenally. A new issue would sel for $1,148 per bond and mature in 20 years. The fimis tax rate is 34 percent. d. A preferred stock paying a dividend of 7.9 percent on a $105 par value. If a new issue is offered, the shanes would sell for 585.59 per share. a. The after-tax cost of debt debt for the firm is \%. (Round to two decimal places.) b. The cost of common equity for the firm is %. (Round to two decimal places.) c. The atter-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.)

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