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need part C and D Individual or component costs of capital) Compute the cost of capital for the firm for the following Currently bonds with
need part C and D
Individual or component costs of capital) Compute the cost of capital for the firm for the following Currently bonds with a similar credit rating and maturity as the firm's outstanding debt are selling to yield 7.91 percent while the borrowing fien's corporate tax rate is 34 percent b. Common stock for a firm that paid a 5103 dividend last year. The dividends are expected to grow at a rate of 5.9 percent per year into the foreseeable future. The price of this stock is now 524 87 A bond that has a 1.000 par value and a coupon interest rate of 11.1 percent with interest paid semiannually. A now issue would soll for 51,152 per bond and mature in 20 years The firm's tax rates 34 percent d. A preferred stock paying a dividend of 6.7 percent on a 5108 par valow. Ha new issue is offered the shares would sell for $84.89 per share Theater-tax cost of debt debt for the firm is 522% (Round to two decimal places) b. The cost of common equity for the form is 1023 5. (Round to two decimal places) The attar-tax cost of dedit for the finis % Round to two decimal places) Step by Step Solution
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