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Intro Epson has one bond outstanding with a yleld 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 yleld 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 1.8% 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%. IB Attempt 1/99 for 10 pts. Part 1 What is Epson's (pre-tax) cost of debt? 3+ decimals Submit 8 Attempt 1/99 for 10 pts. Part 2 What is Epson's cost of equity? 3+ decimals Submit Part 3 Attempt 1/99 for 10 pts. What is Epson's capital structure weight for equity, i.e., the fraction of long-term capital provided by equity? 2+ decimals Submit IB Attempt 1/99 for 10 pts. Part 4 What is Epson's weighted average cost of capital? 3+ decimals Submit

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