answer

Welling Inc. has a target debt-equity ratio of 0.84. Its WACC is 9.5%, and the tax rate is 35%. a. If the company's cost of equity is 14%, what is its pre-tax cost of debt? (Do not round intermediate calculations. Round the final answer to 2 decimal places.) Cost of debt .54 % b. If instead you know that the after-tax cost of debt is 6.8%, what is the cost of equity? (Do not round intermediate calculations. Round the final answer to 2 decimal places.) Cost of equity 11.95 X %