Starset Inc. has a target debt-equity ratio of .85. its WACC is 8.1 percent and the tax rate is 21 percent

Problem 14-14 WACC [Lo3] Starset, Inc. has a target debt-equity ratio of 85. Its WACC is 81 percent, and the tax rate is 21 percent a. If the company's cost of equity is 12 percent, what is its pretax cost of debt? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g. 32.16.) b. If instead you know that the aftertax cost of debt is 6.2 percent, what is the cost of equity? Do not round Interimediate calculations and enter your onswer as a percend rounded to 2 decimal places, e.g., 3216.) a. Cost of debt b. Cost of equity up 144