need help with 10-1, 10-2, 10-3 & 10-4

Problems Easy Problems 1-5 10-2 10-1 AFTER-TAX COST OF DEBT The Holmes Company's currently outstanding bonds have an 8% coupon and a 10% yield to maturity. Holmes believes it could issue new bonds at par that would provide a similar yield to maturity. If its marginal tax rate is 25%, what is Holmes' after-tax cost of debt? COST OF PREFERRED STOCK Torch Industries can issue perpetual preferred stock at a price of $57.00 a share. The stock would pay a constant annual dividend of $6.00 a share. What is the company's cost of preferred stock, r,? 10-3 COST OF COMMON EQUITY Pearson Motors has a target capital structure of 30% debt and 70% common equity, with no preferred stock. The yield to maturity on the company's out- standing bonds is 9%, and its tax rate is 25%. Pearson's CFO estimates that the company's WACC is 10.50%. What is Pearson's cost of common equity? 10-4 COST OF EQUITY WITH AND WITHOUT FLOTATION Jarett & Sons's common stock currently trades at $30.00 a share. It is expected to pay an annual dividend of $1.00 a share at the end of the year (D. = $1.00), and the constant growth rate is 4% a year. a. What is the company's cost of common equity if all of its equity comes from retained earnings? b. If the company issued new stock, it would incur a 10% flotation cost. What would be the cost of equity from new stock