Epson has one bond outstanding with a yield to maturity of 7% and a coupon rate of 8%. The company has no preferred stock. Epson's beta is 1.4, the risk-free rate is 2.2% and the expected market risk premium is 6%. Epson has a target debt/equity ratio of 0.6 and a marginal tax rate of 34%.

What is Epson's (pre-tax) cost of debt and the cost of equity? What is Epson's capital structure weight for equity, i.e., the fraction of long-term capital provided by equity? What is Epson's weighted average cost of capital?