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Ursala, Incorporated, has a target debt-equity ratio of 1.30. Its WACC is 9.3 percent and the tax rate is 21 percent. a. If the

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Ursala, Incorporated, has a target debt-equity ratio of 1.30. Its WACC is 9.3 percent and the tax rate is 21 percent. a. If the company's cost of equity is 13.1 percent, what is its pretax cost of debt? b. If instead you know that the aftertax cost of debt is 6.2 percent, what is the cost of equity? Note: For all requirements, do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16. > Answer is complete but not entirely correct. a. Pretax cost of debt 6.00% b. Cost of equity 13.37 %

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