Problem 3-3Subtle Edge, Inc. presents the following excerpts from its December 31, 2014 balance sheet:Current Liabilities:Notes payable, 8% $ 200,000Long-Term Liabilities:Bonds payable, 10% $1,000,000Shareholders EquityCommon stock, par $50,000Additional paid-in-capital, common stock $350,000 Total contributed capital $400,000Retained earnings $250,000 Total shareholders equity $$ 650,000The accounting department also conveys the following information:Risk-free rate of return - 3%Risk Premium - 4.05%Tax Rate - 30%Rate documents to earn a free unlock! Helpful Helpful | 0 Unhelpful Unhelpful | 0

Required: Compute Subtle Edges cost of debt, equity and overall cost of capital.

Required: Compute Subtle Edges cost of debt, equity, and overall cost of capital