Calculate the cost of capital for Odorf Inc. given the following information. Common equity: Number of...

Calculate the cost of capital for Odorf Inc. given the following information. Common equity: Number of shares outstanding = 1 million
Share Price = $1.50
Beta = 1.5

Debt:
Number of bonds = 1,000
Bond price = $948.54
Coupon rate = 10% paid annually
Maturity = 8 years
T-bill rate = 5%
Market return = 16%
Marginal tax rate = 0.35

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