Question: Problem 20 You have until 10:08 PM to complete this assignment. Intro Epson has one bond outstanding with a yield to maturity of 5% and

 Problem 20 You have until 10:08 PM to complete this assignment.

Problem 20 You have until 10:08 PM to complete this assignment. Intro Epson has one bond outstanding with a yield to maturity of 5% and a coupon rate of 8%. The company has no preferred stock. Epson's beta is 0.5, the risk-free rate is 2.9% and the expected market risk premium is 6%. Epson has a target debt/equity ratio of 0.3 and a marginal tax rate of 34%. Attempt 1/1 for 10 pts. Part 1 What is Epson's (pre-tax) cost of debt? 3+ decimals Save Attempt 1/1 for 10 pts. Part 2 What is Epson's cost of equity? 3+ decimals Save Attempt 1/1 for 10 pts. Part 3 What is Epson's capital structure weight for equity, i.e., the fraction of long-term capital provided by equity? 2+ decimals Save Attempt 1/1 for 10 pts. Part 4 What is Epson's weighted average cost of capital? 3+ decimals Save

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