(Individual or component costs of captal) Compute the cost of the following a. A bond that has $1,000 par value (face value) and a contract or coupon interest rale of 8 percent. A rewe issue would have a floatation coet of 9 percent of the $1,125 market value. The bonds molure in 15 years. The firmis average tax rate is 30 percent and its marginal tax rate is 23 percent. b. A new common stock issue that paid a $1.70 dividend last year. The par value of the stock is $15, and earnings per share have grown at a rate of 8 percent per year. This growth rate is expected to continue info the foreseeable futuro. The company maintains a constant dividend-earnings fatio of 30 percent. The price of this stock is now $26, but 8 percent fiotation costs are anticipated. c. Intemal common equity when the current market price of the common stock is $42. The euppcted dividend this coming year should be $3.60, increasing theroafter at an annual growth rate of 9 percent. The corporasion's tax rate is 23 percent. d. A preterred stock payng a dividend of 9 percent on a $130 par value. If a new issue is offered, flotation costs will be 12 percent of the current price of $179. e. A bond seling to yeld 14 percent after loctation costs, but belare adjusting for the marpinal corporate taxc rate of 23 percent In other words, 14 percent is the rate that equates the net proceeds from the bond wizh the present value of the future cash flows (principal and interest). a. What is the firm's affer-tax cost of debt on the bond? (Round to two decimal places.)