Steady Company's stock has a beta of 0.15. If the risk-free rate is 5.9% and the market risk premium is 7.1%, what is an estimate of Steady Company's cost of equity?Steady's cost of equity capital is ______%. (Round to one decimal place.)

Steady Company's stock has a beta of

0.150.15.

If the risk-free rate is

5.9 %5.9%

and the market risk premium is 7.1%,

what is an estimate of Steady Company's cost of equity?Steady's cost of equity capital is

_____%.

(Round to one decimal place)

Note: Assume that the firm will always be able to utilize its full interest tax shield.

a. The cost of debt is

______% per year.(Round to four decimal places.)b.

If Avicorp faces a 40%

tax rate, the after-tax cost of debt is _________%.

(Round to four decimal places.)