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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
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 1.5, the risk-free rate is 0.9% 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%. Part 1 What is Epson's (pre-tax) cost of debt? 4+ decimals Submit B Attempt 1/10 for 10 pts. Part 2 What is Epson's cost of equity? BAttempt 1/10 for 10 pts. 3+ decimals Submit
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