(Individual component costs of capital)Compute the cost of capital for the firm

Question

(Individual component costs of capital)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 10.4%.The bonds have a current market value of $1,126 and will mature in 10 years.The firms marginal tax rate is 34% b: A new common stock issue that paid a $1.81 divided last year. The firms dividends are expected to continue to grow at 6.66% per year forever. The price of the firms common stock is now $27.83 c:A preferred stock paying a 9.8% dividend on a $151 par value. d:A bong selling to yield 11.9% here the firms tax rate is 34% _________________________________________________________ a: A bond that has 1,000 par value(face value) and a contract or coupon interest rate of 10.4%. The bonds have a current market value of $1,126 and will mature in 10 years.The firms marginal tax rate is 34% The cost of capital from this bond is _____% (round to two decimal places)

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