Question
Starset, Inc., has a target debt-equity ratio of 0.78. Its WACC is 10 percent, and the tax rate is 35 percent. If the company's cost
| Starset, Inc., has a target debt-equity ratio of 0.78. Its WACC is 10 percent, and the tax rate is 35 percent. |
| If the company's cost of equity is 17 percent, what is the pretax cost of debt? |
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| If instead you know that the aftertax cost of debt is 6.2 percent, what is the cost of equity? |
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Cost Benefit Analysis
Authors: Harry F. Campbell, Richard P.C. Brown
3rd Edition
1032320753, 9781032320755
