Individual or component costs of capital.

1. Individual or component costs of capital. Compute the cost of capital for the firm for the following.

a. A bond that has a $1000 par value and a contract or coupon interest rate of 11.7%. The bonds have a current market value of $1,130 and will mature in 10 years. The firm's marginal tax rate is 34%.
The cost of capital from this bond debt ___% (round to two decimal places)

b. A new common stock issue that paid $1.84 dividend last year. The firm's dividends are expected to continue to grow at 6.2% per year forever. The price of the firm's common stock is now $27.26.

c. A preferred stock paying an 9.7% dividend on a $100 par value.

d. A bond selling to yield 12.4% where the firm's tax rate is 34%