Use 4 decimal places on your calculations (can round to 2 decimal places when you put it in percentage form for final answer)

1. A new bond issue is being issued at a market price of $422 with a 11.4% interest rate and will be due in 16 years. If the firm has a 32 percent tax rate, calculate the after-tax cost of debt.

2. A company has a preferred stock issue with a $7.95 dividend with a market price of $112 and float costs of $8.85. Calculate the cost of preferred stock.

3. A common stock paid a $4.90 dividend last year. The stock has a price of $115 and float costs of $13.25. The growth rate of the stock is 6.5%. Calculate the cost of new common stock.

4. Based on the information in number 3, calculate the cost of retained earnings.