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Please do all parts. (Individual or component costs of capital) Compute the cost of capital for the firm for the following: a. Currently bonds with

image text in transcribedPlease do all parts.

(Individual or component costs of capital) Compute the cost of capital for the firm for the following: a. Currently bonds with a similar credit rating and maturity as the firm's outstanding debt are selling to yield 7.49 percent while the borrowing firm's corporate tax rate is 34 percent. b. Common stock for a firm that paid a $1.03 dividend last year. The dividends are expected to grow at a rate of 5.2 percent per year into the foreseeable future. The price of this stock is now \$24.61. c. A bond that has a $1,000 par value and a coupon interest rate of 11.5 percent with interest paid semiannually. A new issue would sell for $1,151 per bond and mature in 20 years. The firm's tax rate is 34 percent. d. A preferred stock paying a dividend of 7.9 percent on a $102 par value. If a new issue is offered, the shares would sell for $85.61 per share

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