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The answers are given, I just need to know how to get them. The Baby Bell Corporation's common stock has a beta of 1.10. If

The answers are given, I just need to know how to get them. image text in transcribed
The Baby Bell Corporation's common stock has a beta of 1.10. If the risk-free rate is 6 percent and the expected return on the market is 13 percent, what is Baby Bell's cost of equity? R_CAPM = 13.70% As a securities analyst, you are trying to determine the cost of debt at Eli Lilly & Co. The firm has a bond issue outstanding with 12 years to maturity. The current price of the bonds is 115 percent of face value. The issue makes semiannual payments and has a coupon rate of 6.57 percent. What is Lilly's pretax cost of debt, based on this bond? If the tax rate is 35%, what is the after-tax cost of debt? Pretax cost = 4.902%; After-tax cost = 3.19%

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