A bond that a $1000 par value (face value) and a contract or coupon interest rate is 10.9%. The bonds have a current market value of $1,123 and will mature in 10 years. The firm’s marginal tax rate is 34%.A new common stock issue that paid a $1.76 dividend last year. The firm’s dividends are expected to continue to grow at 7.9% per year forever.The price of the firm’s common stock is now $27.13
A Preferred stock paying 9.2% dividend on a $131 par value.
A bond selling to yield 12.6% where the firm’s tax rate is 34%
The cost of Capital from this bond debt is?