?(Individual or component costs of capital?) Compute the cost ofthe? following:
a. A bond that has ?$1,000 par value? (face value) and a contractor coupon interest rate of 6 percent. A new issue would have afloatation cost of 7percent of the ?$1,130 market value. The bondsmature in 6 years. The? firm's average tax rate is 30 percent andits marginal tax rate is 36 percent.
b. A new common stock issue that paid a ?$1.80 dividend last year.The par value of the stock is? $15, and earnings per share havegrown at a rate of 9 percent per year. This growth rate is expectedto continue into the foreseeable future. The company maintains aconstant? dividend-earnings ratio of 30 percent. The price of thisstock is now ?$32?, but 8 percent flotation costs areanticipated.
c. Internal common equity when the current market price of thecommon stock is ?$49. The expected dividend this coming year shouldbe ?$3.50?, increasing thereafter at an annual growth rate of 9percent. The? corporation's tax rate is 36 percent.
d. A preferred stock paying a dividend of 9 percent on a ?$140 parvalue. If a new issue is? offered, flotation costs will be 14percent of the current price of ?$175.
e. A bond selling to yield 9 percent after flotation? costs, butbefore adjusting for the marginal corporate tax rate of 36 percent.In other? words, 9 percent is the rate that equates the netproceeds from the bond with the present value of the future cashflows? (principal and? interest).

a. What is the firm's after-tax cost of debt on the bond?

____% (Round to two decimal places)

b. What is the cost of external common equity?

____% (round to two decimal places)

c. What is the cost of internal common equity?

____% (Round to two decimal places)

d. What is the cost of capital for the preferred stock?

____%

e. What is the after-tax cost of debt on the bond?

____%