% P14-3 (similar to) Question Help (Individual or component costs of capital) Compute the cost of capital for the firm for the following a. A band that has a $1.000 par value (face value) and a contract or coupon interest rate of 117 percent Interest payments are $58 50 and are paid semiannually The bonds have a current market value of 51.127 and will mature in 10 years. The firm's marginal tax rate is 34 percet. b. A new common stock issue that paid a 51 84 dividend last year. The firm's dividends are expected to continue to grow at 7 3 porcent per year forever The price of the firm's common stock is now $2727 c. A proforred stock that sells for $143 pays a dividend of 8 1 percent, and has a $100 par value d. A bond selling to yold 12 3 percent where the firm's tax rate is 34 percent Gion a. The after-tax cost of debt is 60(Round to two decimal places) tion b. The cost of common equity - % (Round to two decimal plutes)