(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 5955 and a coupon interest rate of 8 percent. Flotation costs for a new issue would be approximately 6 percent The bonds mature in 8 years and the corporate tax rate is 23 percent b. A preferred stock selling for $113 with an annual dividend payment of $11. The flotation cost will be 59 per share. The company's marginal tax rate is 23 percent c. Retained earnings totaling 54.8 million. The price of the common stock is 569 per share, and dividend per share was 59 83 last year. The dividend is not expected to change in the future d. New common stock for which the most recent dividend was $2.66 The company's dividends per share should continue to increase at a growth rate of 9 percent into the indefinite future. The market price of the stock is currently $54, however, flotation costs of 56 per share are expected if the new stock is issued a. What is the firm's after tax cost of debt on the bond? [% (Round to two decimal places)