Question: please help!! solve a,b,c,d, and e (Individual or component costs of capitan) Compule the cost of the following a. A bond that has $1,000 par

please help!! solve a,b,c,d, and e
please help!! solve a,b,c,d, and e (Individual or component costs of capitan)

(Individual or component costs of capitan) Compule the cost of the following a. A bond that has $1,000 par value (face value) and a contract or coupon interest rate of 7 percent. A new issue would have a floatation cost of 7 percent of the $1,150 market value. The bonds mature in 8 years. The firm's average tax rate is 30 percent and its marginal tax rate is 24 percent. b. A new common slock issue that paid a $1,60 dividend last year. The par value of the stock is $15, and earnings per share have grown at a rate of 8 percent per year. This growh 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 $25, but 8 percent flotation costs are anticipated c. Internal common equity when the current market price of the common stock is $47. The expected dividend this corring year should be $3.50, increasing thereafter at an annuai growth rate of 8 percent. The corporation's tax rate is 24 percent d. A preferred stock paying a dividend of 8 percent on a $140 par value. If a new issue is offered, flotation costs will be 16 percent of the current price of $171. e. A bond solling to yield 12 percent after flotation costs, but bofore adjusting for the marginal corporate tax rate of 24 percent. In other words, 12 percent is the rate that oquates the net proceods from the bond with the present value of the future cash fows (principal and interest). a. What is the firm's afor-tax cost of debt on the bond? \% (Round to two decimal places.)

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