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Epson has one bond outstanding with a yield to maturity of 7 % and a coupon rate of 8 % . The company has no

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 1.1, the risk-free rate is 2.8% and the expected market risk premium is 6%.
Epson has a target debt/equity ratio of 0.8 and a marginal tax rate of 34%. a. What is Epson's (pre-tax) cost of debt? b. What is Epson's cost of equity? c. What is Epson's capital structure weight for equity, i.e., the fraction of long-term capital provided by equity? d. what is their WACC?

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