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Question 9 Zeta Ltd. has a debt-to-equity ratio of 0.35. The company has a WACC of 12% and is subject to a corporate tax rate

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Question 9 Zeta Ltd. has a debt-to-equity ratio of 0.35. The company has a WACC of 12% and is subject to a corporate tax rate of 30%. a) Suppose Zeta's cost of equity is 14%, what is its pre-tax cost of debt? ( 5 marks) b) What is its cost of equity if its after-tax cost of debt is 5.5% ? ( 5 marks) Show your workings and round your final answers to 2 decimal places

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