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( Individual or component costs of capital ) Your firm is considering a new investment proposal and would like to calculate its weighted average cost

(Individual or component costs of capital) Your firm is considering a new investment proposal and would like to calculate its weighted average cost of capital. To help in this, compute the cost of capital for the firm for the following:
a. A bond that has a $1,000 par value (face value) and a contract or coupon interest rate of 12.6 percent that is paid semiannually. The bond is currently selling for a price of $1,128 and will mature in 10 years. The firm's tax rate is 34 percent.
b. If the firm's bonds are not frequently traded, how would you go about determining a cost of debt for this company?
c. A new common stock issue that paid a $1.78 dividend last year. The par value of the stock is $14, and the firm's dividends per share have grown at a rate of 8.7 percent per year. This growth rate is expected to continue into the foreseeable future. The price of this stock is now $28.98.
d. A preferred stock paying a 10.7 percent dividend on a $130 par value. The preferred shares are currently selling for $146.53.
(Round to two decimal places for ALL ANSWERS.)

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