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Welling Inc. has a target debt - equity ratio of 0 . 8 4 . Its WACC is 9 . 5 % , and the
Welling Inc. has a target debtequity ratio of Its WACC is and the tax rate is
a If the company's cost of equity is what is its pretax cost of debt? Do not round intermediate calculations. Round the final answer to decimal places.
Cost of debt
b If instead you know that the aftertax cost of debt is what is the cost of equity? Do not round intermediate calculations.
Round the final answer to decimal places.
Cost of equity Q
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