ILecture 7: Cost of Capital) Bond Pricing: face value = $1,000, eg., bond sells for 105%Bond Price Note that it's a semi-annual bond. 105%.$1,000-S1050. Calculating Cost of Equity The Dybvig Corporation's common stock has a beta of 1.17. If the risk-free rate is 3.8 percent and the expected return on the market is 11 percent, what is Dybvig's cost of equity capital? 1