The Cypress Company's cost of retained earnings (Rs or is) is currently 19%, their cost of external equity (Re or ie) is 22%, and their bond's carry a coupon rate of 8% and a current yield to maturity of 12%. Their average tax rate is 30 percent. Their book value and market value are the same. Using the following balance sheet:

Assets

Cash 3,000 Accounts payable 2,000

Accounts Receivable 3,000

Inventories 4,000 Long-tern debt 15,000

Plant and Equipment, net 12,000 Common equity (500 shares) 5,000

Total assets 22,000 Total liabilities and equity 22,000