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please show step by step answer for questions a, b, c, and d. thank you (Individual or component costs of capital) Compute the cost of

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(Individual or component costs of capital) Compute the cost of the following: a. A bond that has $1,000 par value (face value) and a contract or coupon interest rate of 9 percent. A new issue would have a floatation cost of 9 percent of the $1,130 market value. The bonds mature in 9 years. The firm's average tax rate is 30 percent and its marginal tax rate is 24 percent. b. A new common stock issue that paid a $1.20 dividend last year. The par value of the stock is $15, and earnings per share have grown at a rate of 11 percent per year. This growth rate is expected to continue into the foreseeable future. The company maintains a constant dividend-earnings ratio of 30 percent. The price of this stock is now $26, but 8 percent flotation costs are anticipated. c. Internal common equity when the current market price of the common stock is \$48. The expected dividend this coming year should be $3.10, increasing thereafter at an annual growth rate of 12 percent. The corporation's tax rate is 24 percent. d. A preferred stock paying a dividend of 12 percent on a $140 par value. If a new issue is offered, flotation costs will be 12 percent of the current price of $165. a. What is the firm's after-tax cost of debt on the bond? % (Round to two decimal places.)

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