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Compute the cost of capital for the firm for the​ following: a.  A bond that has...

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 11.1%. Interest payments are ​$55.50 and are paid semiannually. The bonds have a current market value of $1,130 and will mature in 10 years. The​ firm's marginal tax rate is 34%. What is the after-tax cost of debt?

b.  A new common stock issue that paid a $1.76 dividend last year. The​ firm's dividends are expected to continue to grow at 6.1% per​ year, forever. The price of the​ firm's common stock is now $27.12. What is the cost of common equity?

c.  A preferred stock that sells for ​$132, pays a dividend of 8.6%, and has a​ $100 par value. What is the cost of preferred stock?

d.  A bond selling to yield 12.6% where the​ firm's tax rate is 34%. What is the after-tax cost of debt?

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