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Parta. a business is raising money for a new project. It is looking to raise...

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Finance

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Parta. a business is raising money for a new project. It is looking to raise $48 million via bonds. The planned bond has an 8.8% semi-annual coupon, $1000 par value, and a 17-year to maturity. After the fee paid to the investment bank, the business will receive $975 for each bond. What is the cost of debt for the new project? (10 points) Part b. last year, the business's earnings report posted $4.4 EPS and the business paid a $1.6 dividend for each share. The ROE is 12%. Assume the retention ratio would stay the same for the next few years. What is the growth rate for the business's common stock? Continue with the last question Part c. Assume the business's dividend will grow at the fixed rate as last year (last part) in the future, and the current market value of stock is $64. Find the cost of common stock

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