Your firm is considering a new investment proposal I would like to calculate it's weighted average cost of capital. To help in this, comoute the cost of capital for the firm for the following:

a. A bond that has a $1000 par value and a contract or coupon interest rafe of 12.0 percent that is lakd semiannualy. the bond is currently selling for a price of $1,125 and will mature in 10 years. The firms tax rate is 34 percent.

b. If the firms bonds are not frequently traded how would you go about determining a cost of debt for this company?

c. A new common stock issue that paid a $1.75 divident last year. The par value of the stock is $15, and the firms dividends per share have grown at a rate of 8.0 percent per year. this growth is expected to continue into the foreseeable future. the price of this stock is now $28.00

d. A preffered stock paying a 10.0 percent dividend on a $125 par value. the preffered shares are currently selling for $150.00

e. a bond selling to yield 13.0 percent for the purchaser of the bond. the borrowing firm faces a tax rate of 34%