(a) Garudnahani Company issues a zero coupon bond having a 10 years maturity and currently selling at Rs 500. The par value of bond is Rs 1,000. Corporate tax rate is 40%. Calculate the after tax…

(a) Garudnahani Company issues a zero-coupon bond having a 10-years maturity and currently selling at Rs 500. The par value of bond is Rs 1,000. Corporate tax rate is 40%. Calculate the after tax cost of debt. (b) Bhedetar Company's next expected dividend is Rs 3.18; its growth rate is 6%; and its common stock now sells for Rs 36. New stock (external equity) can be sold to net Rs 32.40 per share. a. What is Bhedetar's cost of retained earnings? b. What Bhedetar's percentage flotation cost? c. What Bhedetar's cost of new common stock?