Question
Ikibana restaurants, Inc., has a target debtequity ratio of 55%. Its WACC is 15 percent, and the tax rate is 25 percent. a)If the cost
Ikibana restaurants, Inc., has a target debtequity ratio of 55%. Its WACC is 15 percent, and the tax rate is 25 percent.
a)If the cost of equity is 20 percent, what is its pretax cost of debt?
b) If instead you know that the aftertax cost of debt is 10 percent, what is the cost of equity?
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Crypto Investing Mastery Bible
Authors: Nick Woods ,Chris Collins
1st Edition
1088052207, 978-1088052204
