Question
Starset, Inc., has a target debt-equity ratio of 0.84. Its WACC is 10 percent, and the tax rate is 34 percent. If the company's cost
| Starset, Inc., has a target debt-equity ratio of 0.84. Its WACC is 10 percent, and the tax rate is 34 percent. |
| If the company's cost of equity is 16 percent, what is the pretax cost of debt? |
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| If instead you know that the aftertax cost of debt is 7.5 percent, what is the cost of equity? |
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Corporate Finance Theory And Practice
Authors: Aswath Damodaran
2nd Edition
0471283320, 9780471283324
