$($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 $$1,000$ par value $($face value$)$ and a contract or coupon interest rate of $12\mathrm{.}8$ percent that is paid semiannually. The bond is currently selling for a price of $$1,124$ 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 $$1\mathrm{.}79$ dividend last year. The par value of the stock is $$16,$ and the firm's dividends per share have grown at a rate of $7\mathrm{.}4$ percent per year. This growth rate is expected to continue into the foreseeable future. The price of this stock is now $$28\mathrm{.}43.$

d$.$ A preferred stock paying a $10\mathrm{.}9$ percent dividend on a $$129$ par value. The preferred shares are currently selling for $$145\mathrm{.}86.$

e$.$ A bond selling to yield $12\mathrm{.}6$ percent for the purchaser of the bond. The borrowing firm faces a taxtrate of $34$ percent.

a$.$ The after$-$tax cost of debt from the firm is decimal places.$)$

$\%.($Round to two