(NOTE _ I am particularly looking for the Second answers - the COST OF EQUITY % - see below )

Question - "The dollar cost of debt for Coval Consulting, a U.S. research firm, is 7.9%.

The firm faces a tax rate of 28% on all income, no matter where it is earned. Managers in the firm need to know its yen cost of debt because they are considering a new bond issue in Tokyo to raise money for a new investment there. The risk-free interest rates on dollars and yen are

r$=5% and r=1.4%

respectively. Coval Consulting is willing to assume that capital markets are internationally integrated and that its free cash flows are uncorrelated with the yen-dollar spot rate. What is Coval Consulting's after-tax cost of debt in yen? (Hint: Start by finding the after-tax cost of debt in dollars and then finding the yen equivalent.)

First Question: The after-tax cost of debt in dollars is:

_ (my first answer to this question ): 5.695.69%.

(Round to two decimal places.)

Second Question: The cost of equity is ___ %.

(Round to two decimal places.)