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Intro Epson has one bond outstanding with a yield to maturity of 4% and a coupon rate of 8%. The company has no preferred stock.

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Intro Epson has one bond outstanding with a yield to maturity of 4% and a coupon rate of 8%. The company has no preferred stock. Epson's beta is 1.3, the risk-free rate is 2.2% and the expected market risk premium is 6%. Epson has a target debt/equity ratio of 0.4 and a marginal tax rate of 34%. Attempt 1/1 for 10 pts. Part 1 What is Epson's (pre-tax) cost of debt? 4+ decimals Submit Attempt 1/1 for 10 pts. Part 2 What is Epson's cost of equity? 3+ decimals Submit

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