(Individual or component costs of capital) Compute the cost of capital for the firm for the following

Currentlv bonds with a similar credit rating and maturity as the firm's outstandina debt are sellina to vield 7.93 percent while the borrowina

firm's corporate tax rate is 34 percent.

Common stock for a firm that paid a $1.02 dividend last year. The dividends are expected to grow at a rate of 4.4 percent per year into the toreseeable future. The price of this stock is now

$24.47.

- A bond that has a $1,000 par value and a coupon interest rate of 12.1 percent with interest paid semiannually. A new issue would sell for $1,149 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 $108 par value. If a new issue is offered, the shares would sell for $84.81 per share.

The after-tax cost of debt debt for the firm is %. (Round to two decimal places.)