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Compute the cost of capital for the firm using the following: a) a bond that has a $1000 par value (face value) and a contract or coupon interest...
Compute the cost of capital for the firm using the following:a) a bond that has a $1000 par value (face value) and a contract or coupon interest rate of 11.1%. The bonds have a current market value of $1,128 and will mature in 10 years. The firm's marginal tax rate is 34%b) A new common stock issue that paid a $1.81 dividend last year. The firm's dividends are expected to continue to grow at 7.2% per year forever. The price of the firm's common stock is now $27.72.c) A preferred stock paying a 8.2% dividend on a $152 par value.d)A bond selling to yeild 11.6% where the firm's tax rate is 34%