Question
Garnet, Inc., has a target debt-equity ratio of 0.45. Its WACC is 11.9 %, and the tax rate is 34 % If Garnet's cost of
Garnet, Inc., has a target debt-equity ratio of 0.45. Its WACC is 11.9 %, and the tax rate is 34 %
If Garnet's cost of equity is 16%, what is its pretax cost of debt? (Report answer in percentage terms and round to 2 decimal places. Do not round intermediate calculations).
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Corporate Finance Core Principles and Applications
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan
5th edition
1259289907, 978-1259289903
