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Bento, Inc., has a target debt-equity ratio of 50 . Its cost of equity is 13 percent, and its cost of debt is 7 percent.

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Bento, Inc., has a target debt-equity ratio of 50 . Its cost of equity is 13 percent, and its cost of debt is 7 percent. If the tax rate is 25 percent, what is the company's WACC? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Butler, Inc., has a target debt-equity ratio of 1.55 . Its WACC is 7.9 percent, and the tax rate is 24 percent. a. If the company's cost of equity is 13.2 percent, what is its pretax cost of debt? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. If instead you know that the aftertax cost of debt is 4.2 percent, what is the cost of equity? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

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