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 12 percent. A new issue would have a floatation cost of 8 percent of the $1,150 market value. The bonds b. A new This growth rate is expected to in 5 years. The firm's average tax rate is 30 percent and its marginal tax rate is 33 percent. stock issue that paid a $1.30 dividend last year. The par value of the stock is $15, and earnings per into the foreseeable future. The company maintains a constant dividend-earnings ratio of 30 percent. The price of this stock is but 8 percent c. Internal common equity when the current market price of the common stock is $45. The expected dividend this coming year should be $3.40, increasing thereafter at rate is of 9 percent on a $110 par value. If a new issue is offered, flotation costs will be 13 percent of the current price of $179 d. A preferred stock paying a d e. A bond selling to yield 14 percent after flotation costs, but before adjusting for the equates the net proceeds from the bond with the present value of the future cash flows (principal and interest). al corporate tax rate of 33 percent. In other words, 14 percent is the rate that a. What is the firm's after-tax cost of debt on the bond? %(Round to two decimal places.) b. What is the cost of external common equity? (Round to two decimal places.) chili c. What is the cost of internal common equity? ?%(Round to two decimal places.) d. What is the cost of capital for the preferred stock? [ 1% (Round to two dearnal places.) e. What is the after-tax cost of debt on the bond? we{ tar st ny is ferred % (Round to two decimal places.) Enter your answer in each of the O 201