Equity Information i. 50 million shares ii. $80 per share iii. Beta = 1.11 iv. Market risk premium = 7% v. Risk-free rate = 2% Debt Information i. $1 billion in outstanding debt (face value) ii. Current quote = 108 iii. Coupon rate=9%, semiannual coupons iv. 15 years to maturity v. Tax rate=35% What is the cost of equity? 29. a. 0.79% b. 1.79% c. 2.79% d. 3.79% e. 4.79% f. 5.97% g. 6.69% h. 9.77% i. 10.12% j. 11.06%