MS blai C109 52 6. (Lecture note chapter 9 pages 9-11, 20-22) 53 The market value of XYZ Corporation's common stock is $40 million and the market value of its debt is $60 million. The beta of the company's common stock is 0.8, and the expected market risk premium is 10%. If the Treasury bill rate is 6% and the current yield-to- maturity of the company's bond is 7%, 57 a. Assume no taxes, what is the cost of debt AND cost of equity for XYZ? (0.5) Cost of debt Cost of equity no taxes, what is the firm's cost of capital? (1) 69 Answer Introduction Answer sheet Sheet 1 PM 47:11 12/4/2017 ENG ^