Question: I know how to calculate equity for this problem, but when it asks me to calculate cost of debt, how do I calculate PMT? Thanks!

I know how to calculate equity for this problem, but when

I know how to calculate equity for this problem, but when it asks me to calculate cost of debt, how do I calculate PMT? Thanks!

Equity Information 50 million shares - $80 per share Beta 1.15 Market risk premium = 9% Risk-free rate = 5% = = Debt Information - $1 billion in outstanding debt (face value) . Current quote = 110 Coupon rate = 9%, semiannual coupons 15 years to maturity Tax rate = 21% 1 = 1

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