(Individual or component costs of capital) Compute the cost of the following: . A bond that has $1,000 par value (face value) and a contract or coupon interest rate of 9 percent. A new issue would have a floatation cost of 5 percent of the $1,100 market value. The bonds mature in 10 years. The fim's average tax rate is 30 percent and its marginal tax rate is b. A new common stock issue that paid a $1.80 dividend last year. The par value of the stock 4 percent. $15, and earnings per share have grown at a rate of 7 percent per year. This growth rate is expected to continue into the foreseeable c. Intenal common equity when the current market price of the common stock is $43. The expected dividend this coming year should be $3.50, increasing thereafter at an annual growth rate of 7 percent. The corporation's tax rate s 34 percent d. A preferred stock paying a dividend of 9 percent on a $150 par value. If a new issue is offered, flotation costs will be 12 percent of the current price of $175. s, but before adjusting for the marginal corporate tax of 34 percent. In other words, 12 percent is rate that equates the net proceeds from the bond with the present value of the future cash flows (principal and interest)