SO Homework: Chapter 9 Homework core: 0 of 1 pt Problem 9-2 (similar to) 1 1 of 9 (0 complete) HW Score: 0%, 0 of 9 Question Help Individual or component costs of capital) Compute the cost of the following a. A bond that has 51.000 par valve (face value) and a contract or coupon Interest rate of 11 percent A new issue would have a floatation cost of 5 percent of the $1,125 market value. The bonds mature in 13 years. The firm's average tax rate is 30 percent and its marginal tax rate is 22 percent b. A new common stock sue that paid a $1.50 dividend last year. The par value of the stock is $15, and earnings per share have grown at a rate of 8 percent per year. This growth rate expected to continue into the foreseeable future. The company maintains a constant dividend-earings ratio of 30 percent The price of this stock is now $25, but 6 percent flotation costs are anticipated c.Internal common equity when the current market price of the common stock is $49. The expected dividend this coming year should be $320, increasing thereafter at an annual growth rate of 9 percent. The corporation's tax rate is 22 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 13 percent of the current price of $164 e. A bond selling to yield 13 percent after flotation costs, but before adjusting for the marginal corporate tax rate of 22 percent. In other words, 13 percent is the rate that equates the net proceeds from the bond with the present value of the future cash flow (principal and interest) a. What is the first tax cost of debt on the bond? Hoi Round to two decimal places We Find Stu Mul your wer in the answer box then click Check Answer Cha 4. tentan Carl o F 9 Type here to search