Question
A firm's target debt to equity ratio is 1.55. The firm's WACC is 9.8 percent, and its corporate tax rate is 40 percent. If the
A firm's target debt to equity ratio is 1.55. The firm's WACC is 9.8 percent, and its corporate tax rate is 40 percent. If the firm's cost of equity is 15 percent, what is its pretax cost of debt? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
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Global Business Today
Authors: Charles Hill
7th Edition
0078137217, 9780078137211
