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Below is a Statement of Financial Position for Martin Corporation: Additional Data: ●The long term debt was originally issued at par ($1,000 per bond) and is currently trading at $1,250 per bond. ●Martin Corporation can now issue debt at 150 basis points over U.S. treasury bonds. ●The current risk-free rate (U.S. Treasury bonds) is 7%. ●The expected market return is currently 15%. ●The beta for Martin is 1.25. ●Martin's effective corporate income tax rate is 40%. Using the Capital Asset Pricing Model (CAPM), Martin Corporation's current cost of common equity is B. 10.00% C. 17.00% D. 8.75% |