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Starset, Incorporated, has a target debt - equity ratio of 0 . 7 3 . Its WACC is 1 1 . 5 percent, and the

Starset, Incorporated, has a target debt-equity ratio of 0.73. Its WACC is 11.5 percent, and the tax rate is 34 percent.
If the company's cost of equity is 15.5 percent, what is the pretax cost of debt?
Cost of debt
If instead you know that the aftertax cost of debt is 5.8 percent, what is the cost of equity?
Cost of equity
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