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omework: HW9 core: 0 of 1 pt 12 of 16 (10 complete) HW Score: 56.779, 9.08 of 16 pts roblem 9-11 (similar to) Question Hob

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omework: HW9 core: 0 of 1 pt 12 of 16 (10 complete) HW Score: 56.779, 9.08 of 16 pts roblem 9-11 (similar to) Question Hob Individual or component costs of capitain) Compute the costs for the following sources of financing a. A $1000 par value bond with a market price of $950 and a coupon interest rate of 9 percent Potation costs for a new issue would be approximately percent. The bonds mars and the corporate tax rate is 25 percent b. A preferred stock selling for $111 with an annual dividend payment of $15The flotation cost will be 57 per share the company's mwonal tax rate 25 percent c. Retained earnirts totaling S4 million The price of the common stock is $75 per share and dividend per share was $8 94 last year. The dividend is not expected to change the future d. New common stock for which the most recent dividend was $2.78 The company's dividends per share should continue to increase at a growth rate of percent into the dete The market price of the stock is currently $62 however, flotation costs of $8.per share are expected if the new stocks issued a. What is the firm's after tax cost of debt on the bond? Le Round to two decimal places) Enter your answer in the answer box and then click Check Answer 3 G

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