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 bond that has a S1 .(XX) par value (face value) and a contract or coupon interest rate of 12 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. If the firm's bonds arc not frequently traded, how would you go about determining a cost of debt for this company? 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 8 percent per year. This growth rate is expected to continue into the foreseeable future. The price of this stock is now' $28. A preferred stock paying a 10 percent dividend on a $125 par value. The preferred shares arc currently selling for $ 150. A bond selling to yield 13 percent for the purchaser of the bond. The borrowing firm faces a tax rate of 34 percent