A) A bond that has ?$1,000 par value? (face value) and acontract or coupon interest rate of 7 percent. A new issue wouldhave a floatation cost of 8 percent of the ?$1,120 market value.The bonds mature in 12 years. The? firm's average tax rate is 30percent and its marginal tax rate is 37 percent. What's the firmsafter tax- cost of debt on the bond.

B) A new common stock issue that paid a ?$1.80 dividend lastyear. The par value of the stock is? $15, and earnings per sharehave grown at a rate of 7 percent per year. This growth rate isexpected to continue into the foreseeable future. The companymaintains a constant? dividend-earnings ratio of 30 percent. Theprice of this stock is now ?$26?, but 5 percent flotation costs areanticipated. Compute the cost of new equity.

C. Internal common equity when the current market price of thecommon stock is ?$43. The expected dividend this coming year shouldbe ?$3.10?, increasing thereafter at an annual growth rate of 12percent. The? corporation's tax rate is 37 percent. Whats the costof equity.

D) A preferred stock paying a dividend of 12 percent on a ?$150par value. If a new issue is? offered, flotation costs will be 15percent of the current price of ?$171. The preferred stock cost is?

E) A bond selling to yield 13 percent after flotation? costs,but before adjusting for the marginal corporate tax rate of 37percent. In other? words, 13 percent is the rate that equates thenet proceeds from the bond with the present value of the futurecash flows? (principal and? interest). The after-tax cost of debtis?