Myfinanciallab Homework week 2 problems(Individual or component costs ofcapital)

Myfinanciallab Homework week 2 problems(Individual or component costs ofcapital) compute the costfor the firm for the following:1. ABondthat has a $1000 par value (face value) and acontract or coupon interest rate of 10.5%. The bonds have a currentmarket value of $1120 and will mature in 10 years. The firmsmarginal rate is 34%.The cost of capital from this bond debt is____% ROUND TWO DECIMALPLACES FOR EACH2. A Newcommonstockissue that paid a$1.85dividendlast year. The firms dividends areexpected to continue to grow at 7.1% per year forever. The price ofthe firms common stock is now $27.72.The cost of capital from the commonequityis______%.3. A preferred stock paying an 9.9% dividend on a $118 parvalue.The cost of the preferred stock is ____%4. A bond selling to yield 12.7% where the firms tax rate is34%.