Find the 30-year US Treasury bond rate. Assume the RLA Companys default risk is rated AA. Estimate the cost of equity for based upon the RLA raw beta for the firm of 2.3664. The value of treasury stock is 0 as shown below, an RLA has a long term treasury bond rate at 3.7% and RLA has an interest coverage ratio of 2.198.

Table I. Balance Sheet

ASSETS		LIABILITIES
Cash & Short-Term Investments	$129.452	Accounts Payable	$ 1,384.64
Net Receivables	929.476	Notes Payable & Other ST Borrowings	0
Inventories	3154.742	Current Portion of LT Debt	37.311
Prepaid Expenses		Total Current Debt	37.311
Other Current Assets	195.377	Income Taxes Payable	132.767
Total Current Assets	4409.047	Accrued Expenses	665.498
		Other Current Liabilities	358.05
Gross Plant, Property & Equipment	4865.357	Total Other Current Liabilities	1023.548
Accumulated Depreciation	-2969.707	Total Current Liabilities	2578.27
Net Plant Property & Equipment	1895.65	Long Term Debt	5996.22
Investments at Equity	0	Deferred Taxes & Investment Tax Credit
Other Investments	0	Other Liabilities	963.663
Intangibles	464.404	TOTAL LIABILITIES	9538.153
Deferred Charges		Redeemable Non-Controlling Interest	0
Other Assets	309.618
TOTAL ASSETS	$7,078.719	EQUITY
		Preferred Stock-Redeemable	0
		Preferred Stock-Nonredeemable	182.098
		Total Preferred Stock	182.098
		Common Stock	904.268
		Capital Surplus	4280.831
		Retained Earnings	-7826.631
		Less: Treasury Stock
		Common Equity	-2641.532
		Shareholders Equity-Parent	-2459.434
		Nonredeemable Non-controlling Interest	0
		STOCKHOLDERS EQUITY TOTAL	-2459.434
		TOTAL LIABILITIES & EQUITY	$7,078.719