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.A bond that has a $1,000 par value (face value) and a contract or coupon interest rate of 11.4 percent that is paid semiannually. The bond is currently selling for a price of $1,129 and will mature in 10 years. The firm's tax rate is 34 percent.

c)A new common stock issue that paid a $1.77 dividend last year. The par value of the stock is $16 and the firm's dividends per share have grown at a rate of 7.1percent per year. This growth rate is expected to continue into the foreseeable future. The price of this stock is now $27.18.

d)A preferred stock paying a 10.7 percent dividend on a $122 par value. The preferred shares are currently selling for $147.78.

e) A bond selling to yield 13.3 percent for the purchaser of the bond. The borrowing firm faces a tax rate of 34 percent.

Find:

a) The after-tax cost of debt from the firm is

c) The cost of common equity for the firm is

d)The cost of preferred stock for the firm is

e) The after-tax cost of debt for the firm is