(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 bond that has a $1,000 par value (face value) and a contract or coupon interest rate of 10.9% that is paid semiannually: the bond is currently setting for a price of $1,129 and will mature in 10 years. The firm's tax rate is 34%. If the firm's bonds are not frequently traded, how would you go about determining a cost of debt for this company?
• A new common stock issue that paid a $1.74 dividend last year. The par value of the stock is $16, and the firm's dividends per share have grown at a rate of 9.7% per year. This growth rate is expected to continue into the foreseeable future. The price of this stock is now $27.88.
• A preferred stock paying an 8.3% dividend on a $120 par value. The preferred shares are currently setting for $153.18.
• A bond setting to yield 12.9% for the purchaser of the bond: the borrowing firm faces a tax rate of 34%.