Farris Farms Ltd has $200,000 (face value) of 10-year bonds outstanding. Each $1.000 bond carries a 5% coupon, paid semi-annually, and is currently selling in the market for $950. They also have 100,000 common shares outstanding. The shares just paid a dividend of $2.50. The current yield on Treasury Bills is 2% and the return on the market 10%. Farris Farms has a Beta of 2. an ROE of 14%, a tax rate of 30% and a payout ratio of 60%. What is the cost of debt for Farris? 07.44% O5.66% 06.55% 05.00% 04.77% What is the market value of Farris's debt? O$200,000 08210.000 C$220.000 $230,000 $190.000 KAL ==== JALAN What is the required return on Farris equity, computed using the CAPM? 019% 016% 018% O15% 017% What growth rate does Farris expect, using the formula g = ROE x Plowback 4.6% 05.6% C6.096 07.0% 06.6%