Question
Kose, Inc., has a target debt-equity ratio of 1.31. Its WACC is 8.1 percent, and the tax rate is 22%. a. If the company's cost
Kose, Inc., has a target debt-equity ratio of 1.31. Its WACC is 8.1 percent, and the tax rate is 22%.
a. If the company's cost of equity is 12%, what is its pretax cost of debt?
b. If instead you know that the after-tax cost of debt is 5.8%, what is the cost of equity?
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Case Studies In Finance
Authors: Robert F. Bruner
4th Edition
0072338628, 978-0072338621
