Question Help o (Individual or component costs of capital) 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 11.0 percent. Interest payments are $5500 and are paid semiannually. The bonds have a current market value of $1,125 and will mature in 10 years. The firm's marginal tax rate is 34 percet b. A new common stock issue that paid a $1.80 dividend tast year. The firm's dividends are expected to continue to grow at 70 percent per year, forever. The price of the firm's common stock is now $27.50 c. A preferred stock that sells for $125, pays a dividend of 90 percent, and has a $100 par value d. A bond selling to yield 120 percent where the firm's tax rate is 34 percent a. The after-tax cost of debt is % (Round to two decimal places.)