1. Rose has preferred stock selling for 89.0 percent of par that pays a 13.0 percent annual coupon. What would be Rose's component cost of preferred stock?
2. Hamilton, Inc. bonds have a coupon rate of 9 percent. The interest is paid? semiannually, and the bonds mature in 7 years. Their par value is ?$1 comma 000. If your required rate of return is 14 ?percent, what is the value of the? bond? What is the value if the interest is paid? annually?