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Jungle, Inc., has a target debt-equity ratio of 0.77. Its WACC is 10.5 percent, and the tax rate is 33 percent. Required: (a) If Jungle's
Jungle, Inc., has a target debt-equity ratio of 0.77. Its WACC is 10.5 percent, and the tax rate is 33 percent. Required: (a) If Jungle's cost of equity is 16 percent, what is the pretax cost of debt? (Do not round your intermediate calculations.) (Click to select) 5.01% 13.22% 4.76% 5.66% 9.35% that the aftertax cost of debt is 6.6 percent, what is the cost of equity? (Do not ediate calculations.)
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