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Epson has one bond outstanding with a yield to maturity of 6% and a coupon rate of 8%. The company has no preferred stock. Epson's

Epson has one bond outstanding with a yield to maturity of 6% and a coupon rate of 8%. The company has no preferred stock. Epson's beta is 0.6, the risk-free rate is 3.3% 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? What is Epson's cost of equity? What is Epson's capital structure weight for equity? What is Epson's WACC?

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