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Use the following information about Rex Inc. for problems 1-6. Common stock: 500,000 shares outstanding. $20 per share, beta=2.3 Bonds: 3,000 bonds outstanding, $1,000 face

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Use the following information about Rex Inc. for problems 1-6. Common stock: 500,000 shares outstanding. $20 per share, beta=2.3 Bonds: 3,000 bonds outstanding, $1,000 face value each, 4.5% coupon paid semiannually, 9 years to maturity, market price of $1,015 per bond. Market risk premium=8%, yield on 30 day Treasury Bill= 1.5%, Tax rate = 25% Question 5 (1 point) What is Rex Inc's Cost of Equity

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