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F15 Kose, Inc., has a target debt-equity ratio of 1.45. lts WACC is 9.6 percent, and the tax rate is 38 percent. a. If Kose's
F15
Kose, Inc., has a target debt-equity ratio of 1.45. lts WACC is 9.6 percent, and the tax rate is 38 percent. a. If Kose's cost of equity is 13 percent, what is its pretax cost of debt? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16) Cost of debt b. If instead you know that the aftertax cost of debt is 5.6 percent, what is the cost of equity? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) Cost of equityStep by Step Solution
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