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Jungle, Inc., has a target debtequity ratio of 0.71. Its WACC is 10.5 percent, and the tax rate is 35 percent. Required: (a) If Jungle's
Jungle, Inc., has a target debtequity ratio of 0.71. Its WACC is 10.5 percent, and the tax rate is 35 percent. Required: (a) If Jungle's cost of equity is 14.5 percent, what is the pretax cost of debt? (Do not round your intermediate calculations.) options: 7.49, 8.21, 13.364, 11.78, 7.16 (b) If instead you know that the aftertax cost of debt is 6.2 percent, what is the cost of equity? (Do not round your intermediate calculations.) options: 13.01, 16.36, 13.55, 14.1, 21.03 please show how you got to answer
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