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Part 4- What is Epson's weighted average cost of capital? Epson has one bond outstanding with a yield to maturity of 4% and a coupon

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Part 4- What is Epson's weighted average cost of capital?
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 1.1, the risk-free rate is 0.5% 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%. Attempt 1/1 for 10 pts. Part 1 What is Epson's (pre-tax) cost of debt? 4+ decimals Submit Attempt 1/1 for 10 pts. Part 2 What is Epson's cost of equity? decimals Submit Attempt 1/1 for 10 pts Part 3 What is Epson's capital structure weight for equity in the fraction of long-term cap tal provided by equity? Submit Part 4 temps

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