(Individual or component costs of capital)Compute the cost of capital for the firm for the following:

a. A bond that has a $1 comma 000 par value (face value) and a contract or coupon interest rate of 10.9 percent. Interest payments are $54.50 and are paid semiannually. The bonds have a current market value of $1 comma 126 and will mature in 10 years. The firm's marginal tax rate is 34 percent.

b. A new common stock issue that paid a $1.78 dividend last year. The firm's dividends are expected to continue to grow at 7.5 percent per year, forever. The price of the firm's common stock is now $27.87.

c.A preferred stock that sells for $146, pays a dividend of 8.8 percent, and has a $100 par value.

d.A bond selling to yield 12.4 percent where the firm's tax rate is 34 percent.