Compute the cost of capital for the firm for the following: A bond that has $1000 par value (face value) and a contract or coupon interest rate 0f 10.2%. The bonds have a current market value of $1,130 and will mature in 10 years. The firms marginal tax rate is 34%.
a. The cost of capital from this bond debt is ___ %? (round to two decimal places)

b. A new common stock issue that paid $1.83 last year. The firms dividends are expected to continue to grow at 7.7 % per year forever. The price of the firms common stock is now $27.11

c. A preferred stock paying 9.1% dividend on a $137 par value.

d. A bond selling to yield 12.2% where the firms tax rate is 37%



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