Question
I am stumped on this problem: Kose, Inc. has a target debt-equity ratio of .38. Its WACC is 10.1% and the tax rate is 25%.
I am stumped on this problem:
Kose, Inc. has a target debt-equity ratio of .38. Its WACC is 10.1% and the tax rate is 25%.
a. If the company's cost of equity is 12%, what is its pretax cost of debt?
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International Financial Management
Authors: Geert Bekaert, Robert Hodrick
3rd edition
1107111820, 110711182X, 978-1107111820
