(Individual or component costs of capital) compute the costfor the firm for the following: 1. A Bond that has a $1000 par value (face value) and acontract or coupon interest rate of 11.2%. The bonds have a currentmarket value of $1120 and will mature in 10 years. The firmsmarginal rate is 34%. The cost of capital from this bond debt is% 2. A New common stock issue that paid a$1.81 dividend last year. The firms dividends areexpected to continue to grow at 7.2% per year forever. The price ofthe firms common stock is now $27.84. The cost of capital from the common equity is%. 3. A preferred stock paying an 8.3% dividend on a $129 parvalue. The cost of the preferred stock is % 4. A bond selling to yield 11.1% where the firms tax rate is34%.
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