FIN - Computing cost of capital

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Computing cost of capital for ....
A bond that has a 1,000 par value and a contract or coupon interest rate of 10.9%. The bonds have a current market value of $1,121 and will mature in 10 years. The firms marginal tax rate is 34%.
What is the cost of capital from this bonds debt?
A new common stock issue that paid a $1.84 dividend last year. The firms dividends are expected to from at 6.7% per year forever. The price of the firms common stock is now $27.53.
A preferred stock paying a 8.9% dividend on a 119 par value.
A bond selling to yield 12.9%where the firms tax rate is 34%

Your firm is considering a new investment proposal and would like to calculate its weighted average cost of capital. To help in this, compute the cost of capital for the following:

A bond that has a 1,000 par value and a contract or coupon interest rate of 11.9%. Thug bond is currently selling for a price of 1,126 and will mature in 10 years. The firms tax rate is 34%. A.The cost of capital from the bond debt is?
B.If the firms bonds are not frequently traded, how would you go about determining a cost of debt for this company?
C. A new common stock issue that paid a 1.77 dividend last year. The par value of the stock is 15, and the firms dividends per share have grown at a rate of 8.2% per year. This growth rate is expected to continue into the foreseeable future. The price of the stock is now $27.34.
D. A preferred stock paying 9.6% dividend on a $129 par value. The preferred shares are currently selling for 150.35
E. A bond selling the yield 12.1% for the purchaser of the bond. The borrowing firm faces a tax rate of 34%.

compute the cost of capital:
A. A bond that has a 1000 par value and a contract or coupon interest rate of 12.1%. Te bond is currently selling for a price of 1,121 and will mature in 10 years. The firms tax rate is 34%.
B. if the firms bonds are not frequently traded, how would you go about determining a cost of debt for this company?
C. A new common stock issue that paid a 1.77 dividend last year. The par value of the stock is 16, and the firms dividends per share have grown at a rate of 8.5% per year. This growth rate is expected to continue into the foreseeable future, the price of the stock is now 28.41.
D. A preferred stock paying a 9.2%dividend on a 125 par value. The preferred shares are currently selling for 147.72.
E. A bond selling to yield 12.7% for the purchaser of the bond the borrowing firm faces a tax rate of 34%.

 

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