Book Value of Debt $2,500,000,000 Market Value of Debt $2,250,000,000 Book Value of Equity $3,500,000,000 Market Value of Equity $4,000,000,000 Beta for Behnke 1.15 Risk free rate 3% Expected return on the market 9% Flotation cost for equity 5% Tax rate 25% Coupon rate = 4%, maturity = 15 years, maturity value = $1,000 and the current price is $985.63. Assume interest is paid semiannually. Bond information Flotation cost for debt is 2% 1. Compute the cost of debt for Behnke. Be sure to adjust for flotation costs. 2. Compute the cost of equity for Behnke. Be sure to adjust for flotation costs. 3. Compute the cost of capital for Behnke