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Score: 0 of 10 pts 8 of 12 (6 complete) HW Score: 50%, 60 of 120 B14-4 (book/static) Question Help (Individual or component costs of

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Score: 0 of 10 pts 8 of 12 (6 complete) HW Score: 50%, 60 of 120 B14-4 (book/static) Question Help (Individual or component costs of capital) 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 120 percent that is paid semiannually. The bond is currently selling for a price of $1,125 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 $15, and the firm's dividends per share have grown at a rate of 80 percent per year. This growth rate is expected to continue into the foreseeable future. The price of this stock is now $28.00 d. A preferred stock paying a 100 percent dividend on a $125 par value. The preferred shares are currently selling for $150 00 e. A bond selling to yield 130 percent for the purchaser of the bond The borrowing firm faces a tax rate of 34 percent a. The atter-tax cost of debt from the firm is 0% (Round to two decimal places)

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