(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 Minified Corporation. Cost of debt: Because Mind flex's bonds do not trade very frequently, you have decided to use 9 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 Mind flex's outstanding debt. In addition, Minified faces a corporate tax rate of 34 percent. Cost of common equity: Mind flex's common stock paid a $1.25 dividend last year. In addition, Mind flex's dividends are growing at a rate of 6 percent per year and this growth rate is expected to continue into the foreseeable future. The price of this stock is currently $30. Cost of debt: Now let's assume that Mindflex's bonds are frequently traded. A Mind-Hex bond has a $ 1,000 par value (face value) and a coupon interest rate of 13 percent that is paid semiannually. The bonds are currently selling for $1, 125 and will mature in 20 years. Mind flex's corporate tax rate is 34 percent. Cost of preferred stock: Mind flex's preferred stock pays a 10 percent dividend on a $125 par value. However, the market price at which the preferred shares could be sold is only $90