Question
Fyre, Inc., has a target debtequity ratio of 1.30. Its WACC is 8.4 percent, and the tax rate is 40 percent. a. If the companys
| Fyre, Inc., has a target debtequity ratio of 1.30. Its WACC is 8.4 percent, and the tax rate is 40 percent. |
| a. | If the companys cost of equity is 13 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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The Business Of Personal Finance
Authors: Joseph Calandro Jr, John Hoffmire
1st Edition
1032104562, 978-1032104560
