(Individual or component costs of capital) Compute the cost of the following: a. A bond that has $1,000 par value (face value) and a contract or coupon interest rate of 7 percent. A new issue would have a floatation cost of 7 percent of the $1,125 market value. The bonds mature in 13 years. The firm's average tax rate is 30 percent and its marginal tax rate is 23 percent. b. A new common stock issue that paid a $1.20 dividend last year. The par value of the stock is $15, and earnings per share have grown at a rate of 8 percent per year. This growth rate is expected to continue into the foreseeable future. The company maintains a constant dividend-earnings ratio of 30 percent. The price of this stock is now $22, but 6 percent flotation costs are anticipated. c. Internal common equity when the current market price of the common stock is $51. The expected dividend this coming year should be $3.10, increasing thereafter atan annual growth rate of 9 percent. The corporation's tax rate is 23 percent. d. A preferred stock paying a dividend of 9 percent on a $130 par value. If a newissue is offered, flotation costs will be 12 percent of the current price of $165