Question
Starset, Incorporated, has a target debt-equity ratio of 0.78. Its WACC is 12 percent, and the tax rate is 31 percent. If the company's cost
| Starset, Incorporated, has a target debt-equity ratio of 0.78. Its WACC is 12 percent, and the tax rate is 31 percent. |
| If the company's cost of equity is 16.5 percent, what is the pretax cost of debt? |
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| If instead you know that the aftertax cost of debt is 6.1 percent, what is the cost of equity? |
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Personal Finance
Authors: Elizabeth B. Goldsmith
1st Edition
0534544959, 9780534544959
