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Intro Epson has one bond outstanding with a yield to maturity of 6% 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 6% and a coupon rate of 8%. The company has no preferred stock. Epson's beta is 1.1, the risk-free rate is 1% and the expected market risk premium is 6%. Epson has a target debt/equity ratio of 0.6 and a marginal tax rate of 34%. | Attempt 1/1 Part 1 What is Epson's (pre-tax) cost of debt? $+ decimals Save

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