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 $1, 000 par value (face value) and a contract or coupon interest rate of 12.5 percent that is paid semiannually. The bond is currently selling for a price of $1, 123 and will mature in 10 years. The firm's tax rate is 34 percent. If the firm's bonds are not frequently traded, how would you go about determining a cost of debt for this company? A new common stock issue that paid a $1.73 dividend last year. The par value of the stock is $15, and the firm's dividends per share have grown at a rate of 7.6 percent per year. This growth rate is expected to continue into the foreseeable future. The price of this stock is now $28.92. A preferred stock paying a 9.1 percent dividend on a $121 par value. The preferred shares are currently selling for $145.17. A bond selling to yield 12.3 percent for the purchaser of the bond. The borrowing firm faces a tax rate of 34 percent. The after-tax cost of debt from the firm is (Round to two decimal places.)