Assuming that a firm pays 50% tax rate, calculate the cost of capital in the following cases: a) 8.5% preference shares sold at par b) A perpetual…

Assuming that a firm pays 50% tax rate, calculate the cost of capital in the following cases:

a) 8.5% preference shares sold at par

b) A perpetual bond sold at par, coupon rate of interest being 7%.

c) A ten year 8%, Rs.1000 bond sold at Rs.950 less 4%, underwriting commission.