Instructions: You are required to use a financial calculator or spreadsheet (Excel) to solve 10 problems related to the cost of capital. You are required to show the following 3 steps for each problem (sample questions and solutions are provided for guidance): (i) Describe and interpret the assumptions related to the problem. (ii) Apply the appropriate mathematical model to solve the problem. iii) Calculate the correct solution to the problem. Round all answers to two decimal places. L. Bob Rife Company's preferred stock is currently selling for $38.00 and pays a perpetual annual dividend of S4.30 per share. New issue of preferred stock would have 86 per share in flotation costs. The firm's tax rate is 40%. Compute the cost of new preferred stock. 7. Reason Corp. just issued a series of 20-year maturity bonds with a par value of $1,000 and a 4% coupon, paid semiannually. The bonds can sell in the open market for $950. Flotation costs on the new bonds are $80. If Reason, Corp. is in the 35% tax bracket, what is the pre-tax cost of debt on the newly issued bonds? 8