Problem 3-3 Subtle Edge, Inc. presents the following excerpts from its December 31, 2014 balance sheet: Current Liabilities: Notes payable, 8% $ 200,000 Long-Term Liabilities: Bonds payable, 10% 1,000,000 Shareholders Equity Common stock, par 50,000 Additional paid-in-capital, common stock 350,000 Total contributed capital 400,000 Retained earnings 250,000 Total shareholders equity $ 650,000 The accounting department also conveys the following information: Risk-free rate of return - 3% Risk premium - 4.05% Tax rate 30% Required: Compute Subtle Edges cost of debt, equity, and overall cost of capital.