Please complete and show work in an excel spreadsheet following the Demo Exercise. Do transfer the

financial data to the spreadsheet. No need to show the explanatory notes like what is being provided in

the Demo Exercise.

Submit the Homework spreadsheet using this filename "RHIM$4322-$Last$\_$Name$-$Homework $7"$

Porky Pine Co$.$ is issuing a bond that pays $6\%$ coupon interest annually. Investors are expected to pay

$$950$ for the $10-$year bond. Porky will pay $2\%$ of the market price in flotation costs. What is the after$-$

tax cost of debt if the firm is in the $35\%$ corporate tax bracket?

Compute the after$-$tax cost for the following debt: a bond with a coupon interest rate of $8\%$ matures in

$20$ years. Flotation costs for a new issue would be approximately $6\%$ of the market price, which is

$$920.$ The corporate tax rate is $34\%.$

Calculate the cost of a preferred stock with an annual dividend of $$5,$ stock price of $$65,$ and flotation

costs of $$1\mathrm{.}50.$

Compute the cost of a preferred stock paying a $5\%$ dividend on a $$50$ par value. If a new issue is

offered, flotation costs will be $10\%$ of the current price of $$90.$

Sutter Corporation's common stock is selling for $$16\mathrm{.}80$ a share. Flotation costs will be $5\%$ of the

market price. Last year Sutter paid a dividend of $$\mathrm{.}80.$ Investors are expecting Sutter's dividends to

grow at an anual rate of $5\%$ per year. What is the cost of the common stock?

The common stock for El Viss Company currently sells for $$20$ per share. The firm just paid a

dividend of $$1\mathrm{.}50.$ Dividends per share are anticipated to grow at $4\mathrm{.}89\%.$ Flotation costs for new

shares will be $6\%$ of the selling price. Calculate the cost of the common stock.