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My financial lab Homework week 2 problems (Individual or component

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My financial lab Homework week 2 problems
(Individual or component costs of capital) Compute the cost for the firm for the following:

1. 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 $1123 and will mature in 10 years. The firm’s marginal rate is 34%.

The cost of capital from this bond debt is____%

2. A New common stock issue that paid a $1.78 dividend last year. The firm’s dividends are expected to continue to grow at 7.7% per year forever. The price of the firm’s common stock is now $27.43.

The cost of capital from the common equity is ______%.

3. A preferred stock paying an 8.6% dividend on a $142 par value.

The cost of the preferred stock is ____%

4. A bond selling to yield 11.3% where the firms tax rate is 34%.

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Customer: replied 5 years ago.



I can not open your link, I am at my work place. any other way you can post??

May be its blocked there. I will paste it here itself.

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