Question
Starset, Inc., has a target debt-equity ratio of 0.89. Its WACC is 10.5 percent, and the tax rate is 33 percent. If the company's cost
| Starset, Inc., has a target debt-equity ratio of 0.89. Its WACC is 10.5 percent, and the tax rate is 33 percent. |
| If the company's cost of equity is 14 percent, what is the pretax cost of debt? |
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| If instead you know that the aftertax cost of debt is 5.6 percent, what is the cost of equity? |
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Fundamentals Of Financial Management
Authors: James Van Horne, John Wachowicz
13th Revised Edition
978-0273713630, 273713639
