(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 8.00 percent while the borrowing firm's corporate tax rate is 34 percent. percent. d. A preferred stock paying a dividend of 7.0 percent on a $100 par value. If a new issue is offered, the shares would sell for $85.00 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 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.)