​(Individual or component costs of​ capital) Compute the cost of capital for the firm for the​ following: a. A bond that has a ​$1,000 par value​ (face value) and a contract or coupon interest rate of...

​(Individual or component costs of​ capital)

Compute the cost of capital for the firm for the​ following:

a.  A bond that has a ​$1,000 par value​ (face value) and a contract or coupon interest rate of 11.0 percent. Interest payments are ​$55.00 and are paid semiannually. The bonds have a current market value of ​$1,125 and will mature in 10 years. The​ firm's marginal tax rate is 34 percent.
b.  A new common stock issue that paid a ​$1.80 dividend last year. The​ firm's dividends are expected to continue to grow at 7.0 percent per​ year, forever. The price of the​ firm's common stock is now ​$27.50.
c.  A preferred stock that sells for ​$125​, pays a dividend of 9.0 ​percent, and has a​ $100 par value.
d.  A bond selling to yield 12.0 percent where the​ firm's tax rate is 34 percent.

a.    The​ after-tax cost of debt is      ​%. ​(Round to two decimal​ places.)
b.    The cost of common equity is   ​%. ​(Round to two decimal​ places.)
c.  The cost of preferred stock is    ​%. ​(Round to two decimal​ places.)
d.  The​ after-tax cost of debt is      ​%. ​(Round to two decimal​ places.)