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(Unavidial or companent costs of capitai) Compute the cost of the following: a. A bond that has 51,000 par value (face value) and a contract

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(Unavidial or companent costs of capitai) Compute the cost of the following: a. A bond that has 51,000 par value (face value) and a contract oc coupon irferest rate of 9 percent. A new issue would have a footation coit of 6 percent of the $1,130 market value. The bonds mature in 13 years. The firmis average tax tate is 30 peccent and its marginar tax rate is 23 percent b. A new common stock issue that paid a 51 . B0 dividend last yea. The pay value of the stock it 515 , and earnings per ahare have grown at a rate of 9 percent ger yeac. This growsi rave is a pected 10. continue into the foroseeable future. The company maintaliss a conatsit divisend-6amings tabo of 30 percent the price of bia slock is now 329 , but 7 percent fotkeon isosts are antcipated. percent, The corporation's tax rale is 23 percent. d. A prefered alock paying a dividend of 11 percont on a 5150 par vatue. If a new issue is coleeed, fotalion costs will be in percent of the curent peice of 5173. the bond wth the prosent value of the future cash fows corincipal and interest

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