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Question Help (Individual or component costs of capltal) Your firm is considering a new investment proposal and would like to calculate its weighted average cost

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Question Help (Individual or component costs of capltal) Your firm is considering a new investment proposal and would like to calculate its weighted average cost of capital. To help in this compute the cost of capital for the firm for the following: a. A bond that has a $1,000 par value (face value) and a contract or coupon interest rate of 11.9 percent that is paid semiannually. The bond is currently selling for price of $1,121 and will mature in 10 years. The firm's tax rate is 34 percent. b. If the firm's bonds are not frequently traded, how would you go about determining a cost of debt for this company? c. A new common stock issue that paid a $1.75 dividend last year. The par value of the stock is $16, and the firm's dividends per share have grown at a rate of 8.4 percent per year. This growth rate is expected to continue Into the foreseeable future. The price of this stock is now $28.93. d. A preferred stock paying a 9.6 percent dividend on a $126 par value. The preferred shares are currently selling for $153.22 e. A bond selling to yield 12.7 percent for the purchaser of the bond. The borrowing firm faces a tax rate of 34 percent. a. The alter-tax cost of debt from the firm is % (Round to two decimal places.) an Enter your answer in the answer box and then click Check Answer 4 parts Clear All remaining Check

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