Problem 14 Intro Epson has one bond outstanding with a yield to maturity of 5% and a coupon rate of 8%. The company has no preferred stock. Epson's beta is 1.4, the risk- free rate is 2.7% and the expected market risk premium is 6%. Epson has a target debt/equity ratio of 0.7 and a marginal tax rate of 34%. Attempt 1/10 for 10 pts. Part 1 What is Epson's (pre-tax) cost of debt? 3+ decimals Submit Show all parts