Question: Please answer all questions! Thank you for your time! ( Individual or component costs of capital ) Compute the cost of the following : a.A

 Please answer all questions! Thank you for your time! ( Individual
or component costs of capital ) Compute the cost of the following
Please answer all questions! Thank you for your time!
( Individual or component costs of capital ) Compute the cost of the following :
a.A bond that has $1000 par value ( face value ) and a contract or coupon interest rate of 11 percent . A new issue would have a floatation cost of 9 percent of the $1,150market value . The bonds mature in 6 years . The firm's average tax rate is 30 percent and its marginal tax rate is 25 percent .
b . A new common stock issue that paid a $ 1.20 dividend last year . The par value of the stock is $ 15 , and earnings per share have grown at a rate of 12 percent per year . This growth rate is expected to continue into the foreseeable future . The company maintains a constant dividend - earnings ratio of 30 percent . The price of this stock is now $ 28 , but 9 percent flotation costs are anticipated .
c . Internal common equity when the current market price of the common stock is $ 46 . The expected dividend this coming year should be $ 3.60 , increasing thereafter at an annual growth rate of 11 percent . The corporation's tax rate is 25 percent .
d . A preferred stock paying a dividend of 11 percent on a $ 120 par value . If a new issue is offered , flotation costs will be 11 percent of the current price of $ 164 .
e . A bond selling to yield 8 percent after flotation costs , but before adjusting for the marginal corporate tax rate of 25 percent . In other words , 8 percent is the rate that equates the net proceeds from the bond with the present value of the future cash flows ( principal and interest ) .
: a.A bond that has $1000 par value ( face value )

indo component of Compute the cost of the folowing Atend that has 51.000 per on and of coupon it rate of 14 percent. A www have a los con perche 31.106 mart The band to years. There are 30 per margra 2 percent 1. Aww vida 11.30 dvddo The power of the visit, and is por are have grown at a 12 percent year. This growhole expected to continue to the the com mantine a condarrige rute of 30 percent. The price of this kinow 126. but percentation or .. wwwcomo out when the current market price of the common sok a $46. The expected in this coming wear shodde $3.00 inomasing water almal growhale of tt percent. The corporate A preferred to paying addendo perceron a $120 per visitarowiis offered in ons will be 11 percent of the current price of 164 ..And ingyel Dere har tation, but before using for the moral corporate of 25 percort Wolfer words, 8 percent to the equat erot proces from the bord i prin cash fous principal and interes a. What is the firm's after-tax cost of debt on the bond? 7.88% (Round to two decimal places.) b. What is the cost of external common equity? 14.37 % (Round to two decimal places.) c. What is the cost of internal common equity? 18.50 % (Round to two decimal places.) d. What is the cost of capital for the preferred stock? 8.83 % (Round to two decimal places.) e. What is the after-tax cost of debt on the bond? 7% (Round to two decimal places.) 1 a. What is the firm's after-tax cost of debt on the bond? 7.88% (Round to two decimal places.) b. What is the cost of external common equity? 14.37 % (Round to two decimal places.) c. What is the cost of internal common equity? 18.50 % (Round to two decimal places.) d. What is the cost of capital for the preferred stock? 8.83 % (Round to two decimal places.) e. What is the after-tax cost of debt on the bond? 7% (Round to two decimal places.) 1 indo component of Compute the cost of the folowing Atend that has 51.000 per on and of coupon it rate of 14 percent. A www have a los con perche 31.106 mart The band to years. There are 30 per margra 2 percent 1. Aww vida 11.30 dvddo The power of the visit, and is por are have grown at a 12 percent year. This growhole expected to continue to the the com mantine a condarrige rute of 30 percent. The price of this kinow 126. but percentation or .. wwwcomo out when the current market price of the common sok a $46. The expected in this coming wear shodde $3.00 inomasing water almal growhale of tt percent. The corporate A preferred to paying addendo perceron a $120 per visitarowiis offered in ons will be 11 percent of the current price of 164 ..And ingyel Dere har tation, but before using for the moral corporate of 25 percort Wolfer words, 8 percent to the equat erot proces from the bord i prin cash fous principal and interes a. What is the firm's after-tax cost of debt on the bond? 7.88% (Round to two decimal places.) b. What is the cost of external common equity? 14.37 % (Round to two decimal places.) c. What is the cost of internal common equity? 18.50 % (Round to two decimal places.) d. What is the cost of capital for the preferred stock? 8.83 % (Round to two decimal places.) e. What is the after-tax cost of debt on the bond? 7% (Round to two decimal places.) 1 a. What is the firm's after-tax cost of debt on the bond? 7.88% (Round to two decimal places.) b. What is the cost of external common equity? 14.37 % (Round to two decimal places.) c. What is the cost of internal common equity? 18.50 % (Round to two decimal places.) d. What is the cost of capital for the preferred stock? 8.83 % (Round to two decimal places.) e. What is the after-tax cost of debt on the bond? 7% (Round to two decimal places.) 1

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