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Score: 0 of 4 pts 2 of 4 (0 complete) HW Score: 0%, 0 of 1 Problem 9-11 (similar to) Question Help y (Individual or

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Score: 0 of 4 pts 2 of 4 (0 complete) HW Score: 0%, 0 of 1 Problem 9-11 (similar to) Question Help y (Individual or component costs of capital) Compute the costs for the following sources of financing a. A$1,000 par value bond with a market price of $960 and a coupon interest rate of 7 percent. Flotation costs for a new issue would be approximately 9 percent. The bonds mature in 13 years and the corporate tax rate is 25 percent b. A preferred stock selling for $112 with an annual dividend payment of 512. The flotation cost will be sa per share. The company's margira taxtalas 25 percent c. Retained earnings totaling 84 8 milion. The price of the common stock is $73 per share, and dividend per share was 80.71 last year. The dividend is not expected to change in the future. 4. New common stock for which the most recent dividend was $348. The company's dividends per share should continue to increase at a growth rate of 15 percent into the indefinite future. The market price of the stock is currently $57 however, flotation costs of S8 por share are expected the new stock is issund a. What is the timsalter tax cost of debt on the bond? Round to two decimal places) Er you were box and then click Check Answer 3 11:15 PM 112/2001 a R P H K L B N . curi

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