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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.
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 2.8% and the expected market risk premium is 6% Epson has a target debt/equity ratio of 0.8 and a marginal tax rate of 34% IB Attempt 1/99 for 10 pts. Part 1 What is Epson's (pre-tax) cost of debt? 4+ decimals Submit - Attempt 1/99 for 10 pts. Part 2 What is Epson's cost of equity? 3+ decimals Submit Part 3 IB- Attempt 1/99 for 10 pts. What is Epson's capital structure weight for equity, i.e. the fraction of long-term ital provid equity? 2+ decimals Submit 1 BAT Part 4 What is Epson's weighted average cost of capital? 3+ decimals Submit
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