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WACC Kose, Inc., has a target debt-equity ratio of .38. Its WACC is 10.1 percent and the tax rate is 25 percent. a. If the

WACC

Kose, Inc., has a target debt-equity ratio of .38. Its WACC is 10.1 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?

b. If instead you know that the after tax cost of debt is 6.4 percent, what is the cost of equity?

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