1. James Bold Corp's common stock has a beta of 1.2. The company has also issued a 30-year, 7 percent semi-annual bond 3 years ago. The bond currently sells for 93 percent of its face value. The risk-free rate is 3.5%, the expected return on market is 12% and the company tax rate is 30%. a) What is the company cost of equity. b) What is the pretax cost of debt? c) What is the after-tax cost of debt? d) Which is more relevant, the pretax or the after-tax cost of debt? Why 1. James Bold Corp's common stock has a beta of 1.2. The company has also issued a 30-year, 7 percent semi-annual bond 3 years ago. The bond currently sells for 93 percent of its face value. The risk-free rate is 3.5%, the expected return on market is 12% and the company tax rate is 30%. a) What is the company cost of equity. b) What is the pretax cost of debt? c) What is the after-tax cost of debt? d) Which is more relevant, the pretax or the after-tax cost of debt? Why