Jungle, Inc., has a target debtequity ratio of 0.78. Its WACC is 11 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.)

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6.54%

10.6%

6.85%

7.56%

14.31%

(b)If instead you know that the aftertax cost of debt is 7 percent, what is the cost of equity?(Do not round your intermediate calculations.)

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14.68%

25.18%

13.56%

16.13%

14.12%