Individual or component costs of capital You have just been breed to compute the cost of caps for dubt, prolonted stock and communion took for the Minnes. Corporation a. Cost of debt Since Mindthed bonds do not trade very frequently, you have decided to use 974 percent on your cost of debt which is the yield to maturity on a portfolio bonds with similariting and may b. Cost of common equity Mindilex's cortion stock paid $125 didend last year. In addition Mindes diddords worowegut a rate of 67 percent per you and this growth rate in tapeded to contrat twee future. The price of this stock is currently 529 30 c. Cost of debt Now for sure that indife's bonde areequentraded A Mindflex band has a 51.000 par vare ocean and a couportate of 12.6 percent that he paid a The bonds we selling for $1,129 and will mature in 20 years. Mindes corporate the rate is 1 percent d. Cost of preferred stock Mindes proferred stock pays a dividend of 75 percent on a 5121 par value over the market price at which the preferred shares could be stor . The after tax cost of debt for the firm Round to two decimal The cost of common equity for the found to no decinul place Theater-tax cost of debt for the fimis Round to be decimal places) d. The cost of the prefered rock for the form is and to be decimale) (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 Mindfex Corporation Cost of debt Since Mindfiex's bonds do not trade very frequently you have decided to use 9 74 percent as your cost of debt, which in the yield to maturity on a portfolio of bonds with a similar credit rating and maturity 1. Cost of common equity. Mendflex's common stock paid a $1.28 dividend last year. In addition, Mindfar's dividends are growing at a rate of 67 percent per year and this growth rate is expected to continue into the foreseeable c. Cost of ditt Now let's assume that index's bends are frequently traded A Mindfor bond has a 51.000 par value facevaby and a coupon Interest rate of 12.6 percent that is paid serialy The bons are currently d. Cost of preferred stock Mindex's preferred stock pays a dividend of 7.5 percent on a 5121 par value However, the market price at which the preferred shares could be sold is only $9151 a. The after-tax cost of debt for the firmi EX Round to two decimal places) b. The cost of common equity for the firm in Roond to two decimal places c. The stor tax cont of abt for the fim Round to two decimal place) 4. The cost of the preferred stock for the firm is I Round to two decimal place)
