$($Individual or component costs of capital$)$ You have just been hired to compute the cost of capital for debt, preferred stock, and common stock for the Mindflex Corporation.

a$.$ Cost of debt: Since Mindflex's bonds do not trade very frequently, you have decided to use $8\mathrm{.}67$ percent as your cost of debt, which is the yield to maturity on a portfolio of bonds with a similar credit rating and maturity as Mindflex's outstanding debt. In addition, Mindflex faces a corporate tax rate of $34$ percent.

b$.$ Cost of common equity: Mindflex's common stock paid a $$1\mathrm{.}21$ dividend last year. In addition, Mindflex's dividends are growing at a rate of $5\mathrm{.}6$ percent per year and this growth rate is expected to continue into the foreseeable future. The price of this stock is currently $$29\mathrm{.}12.$

c$.$ Cost of debt: Now let's assume that Mindflex's bonds are frequently traded. A Mindflex bond has a $$1,000$ par value $($face value$)$ and a coupon interest rate of $12\mathrm{.}8$ percent that is paid semiannually. The bonds are currently selling for $$1,122$ and will mature in $20$ years. Mindflex's corporate tax rate is $34$ percent.

d$.$ Cost of preferred stock: Mindflex's preferred stock pays a dividend of $6\mathrm{.}8$ percent on a $$120$ par value.

$($Round to two decimal places for all answers.$)$