A B D E H 3 3 Jiminy's Cricket Farm issued a 30-year, 7 percent semiannual bond 3 years ago. The bond currently sells for 93 percent of its face value. The company's tax rate is 22 percent. What is the pretax cost of debt? What is the aftertax cost of debt? 4 5 6 7 00 9 Settlement Maturity Coupon rate Price (% of par) Redemption value (% of par) Payments per year Tax rate 01/01/00 01/01/27 7% 93 100 2 22% 10 11 12 13 14 15 Complete the following analysis. Do not hard code values in your calculations. Leave the "Basis" input blank in the YIELD function. You must use the built-in Excel function to answer this question. 16 17 Pretax cost of debt 18 19 Aftertax cost of debt 20 A B D E F G H 1 2 2 3 The Graber Corporation's common stock has a beta of 1.15. If the risk-free rate is 3.5 percent and the expected return on the market is 11 percent, what is the company's cost of equity capital? 4 5 6 2 7 Beta Risk-free rate Market return 1.15 3.5% 11% 8 9 10 11 Complete the following analysis. Do not hard code values in your calculations. 12 13 Cost of equity 14 15 16 17