Question
Starset, Inc., has a target debt-equity ratio of .95. Its WACC is 7.9 percent, and the tax rate is 25 percent. a. If the companys
| Starset, Inc., has a target debt-equity ratio of .95. Its WACC is 7.9 percent, and the tax rate is 25 percent. |
| a. | If the companys 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.) |
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Essentials Of Real Estate Finance
Authors: David Sirota, Doris Barrell
14th Edition
1475428391, 9781475428391
