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

a) A bond that has $1,000 par value and a contract or coupon interest rate of 10.1 percent. Interest payments are $50.50 and are paid semiannually. The bonds have a current market value of $1,120 and will mature in 10 years. The firms marginal tax rate if 34 percent.

b) A new common stock issue that paid a $1.78 dividend last year. The firm's dividend are expected to continue to grow at 7.1 percent per year, forever. The price of the firm's common stock is now $27.31.

c) A preferred stock that sells for $132, pays a dividend of 8.8 percent, and has a $100 par value.

d) A bond selling to yield 11.9 percent where the firms tax rate is 34 percent.

a) The after-tax cost of debt is _%. (Round to two decimal places.)

b) The cost of common equity is _%. (Round to two decimal places.)

c) The cost of preferred stock is _%. (Round to two decimal places.)

d) The after-tax cost of debt is _%. (Round to two decimal places.)