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Starset,Inc. has a target debt-equity ratio of 1.3. Its WACC is 8.8 percent, and the tax rate is 23%. A. If the companys cost of

Starset,Inc. has a target debt-equity ratio of 1.3. Its WACC is 8.8 percent, and the tax rate is 23%. A. If the companys cost of equity is 12%, what is the pretax cost of debt? B. Instead you know that the aftertax cost of debt is 6.3%, what is the cost of equity?

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