Company (SJwc) currently has 50,000,000 shares of common stock outstanding that trade at a price of $49.50 per share. SJWC also has $50,000,000 bonds outstanding that currently trade at $913.18 each. SJWC has no preferred stock outstanding and has an equity beta of 2.1 ("two-point-one"). The risk-free rate is 2.5%, and the market is expected to return 14.5%. The firm's bonds have a 15-year life, a $1,000 par value, an 8% coupon rate and pay interest semi-annually sJwc is considering adding to its product mix a "healthy" bottled water geared toward children