(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 9.00 percent as your cost of debt, which is the yield to matunity 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 $1.25 dividend last year. In addition, Mindflex's dividends are growing at a rate of 6.0 percent per year and this growth rate is expected to continue into the foreseeable future. The price of this stock is currently $30.00 e. Cost of debt Now lefs assume that Mindflex's bonds are frequently traded. A Mindlex bond has a $1,000 par value (face value) and a coupon interest rate of 13.0 percent that is paid semiannualily. The bonds are currently selling for $1,125 and will mature in 20 years. Mindfliex's corporate tax rate is 34 percent d. Cost of preferred stock: Mindflex's preferred stook pays a dividend of 7.0 percent on a $125 par value. However, the market price at which the preferred shares could be sold is only $90.00 a. The after-tax cost of debt for the firm its (Round to two decimal places.)