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please answer both part a & b with explaination. Butler Inc., has a debt-equity ratio of 0.45 . Its WACC is 9.6% and the tax
please answer both part a & b with explaination.
Butler Inc., has a debt-equity ratio of 0.45 . Its WACC is 9.6% and the tax rate is 21%. a) If the company's cost of equity is 12.4%, what is its pretax cost of debt? b) If instead you know that the aftertax cost of debt if 5.7%, what is the cost of equity? (15 pts) Output Area: Butler Inc., has a debt-equity ratio of 0.45 . Its WACC is 9.6% and the tax rate is 21%. a) If the company's cost of equity is 12.4%, what is its pretax cost of debt? b) If instead you know that the aftertax cost of debt if 5.7%, what is the cost of equity? (15 pts) Output Area Step by Step Solution
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