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Intro Epson has one bond outstanding with a yield to maturity of 7% 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 7% and a coupon rate of 8%. The company has no preferred stock. Epson's beta is 0.7, the risk-free rate is 1.9% and the expected market risk premium is 6%. Epson has a target debt/equity ratio of 0.5 and a marginal tax rate of 34%. Part 1 IB Attempt 1/10 for 10 pts, What is Epson's (pre-tax) cost of debt? 4+decima Submit Part 2 18 Attempt 1/10 for 10 pts. What is Epson's cost of equity? 4+ decima Submit Part 3 8 Attempt 1/10 for 10 pts. What is Epson's capital structure weight for equity, ie, the traction of long-term capital provided by equity? 3+ docima Submit Part 4 B Attempt 1/10 for 10 pts. What is Epson's weighted average cost of capital? 4+decima Submit

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