Robinson Inc. 's CFO is interested in calculating the cost of capital. In order to calculate the cost of capital, the company has collected the following information: The company's capital structure consists of 40 percent debt and 60 percent common stock. The company has bonds outstanding with 25 years to maturity. The bonds have a 12 percent annual coupon, a face value of $1,000, and a current price of $1 ,252. The company uses the CAPM to calculate the cost of common stock. Currently, the risk-free rate is 5 percent and the market risk premium, (1