Question: Cost of common equity and YVACC Captain Cooks has 5 million bonds outstanding that are selling at par ($100.00) and 5 million shares of common equity outstanding with a share price of $ 100, with no preferred stock. It's before tax cost of debt is. JJLpercent, and its marginal tax rate is 40 percent. The current stock price is P_0 = $23.00. The last dividend was D_0 = $2.50, and it is expected to grow at a constant rate of 8 percent. What is its cost of common equity and its WACC.