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Kose Inc. has a target debt-to-equity ratio of 0.75. Its WACC is 13.2 percent, and the tax rate is 34 percent. a. If Kose's cost
Kose Inc. has a target debt-to-equity ratio of 0.75. Its WACC is 13.2 percent, and the tax rate is 34 percent. a. If Kose's cost of equity is 16 percent, what is its pre-tax cost of debt? (Do not round intermediate calculations. Round the final answer to 2 decimal places.) Pre-tax cost of debt % b. If instead you know that the after-tax cost of debt is 8.4 percent, what is the cost of equity? (Do not round intermediate calculations. Round the final answer to 2 decimal places.) Cost of equity %
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