(Individual or component costs of capital) Compute the costs for the following sources of financing: a. A $ 1,000 par value bond with a market price of $ 940 and a coupon interest rate of 11 percent. Flotation costs for a new issue would be approximately 7 percent. The bonds mature in 7 years and the corporate tax rate is 25 percent. b. A preferred stock selling for $ 114 with an annual dividend payment of $ 8. The flotation cost will be $ 8 per share. The company's marginal tax rate is 25 percent. c. Retained earnings totaling $ 4.8 million. The price of the common stock is $ 76 per share, and dividend per share was $ 9.67 last year. The dividend is not expected to change in the future. d. New common stock for which the most recent dividend was $ 2.65. The company's dividends per share should continue to increase at a growth rate of 12 percent into the indefinite future. The market price of the stock is currently $ 58; however, flotation costs of $ 6 per share are expected if the new stock is issued.