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Welling Inc. has a target debt-equity ratio of 0.78. Its WACC is 9.9%, and the tax rate is 35%. a. If the company's cost of
Welling Inc. has a target debt-equity ratio of 0.78. Its WACC is 9.9%, and the tax rate is 35%. a. If the company's cost of equity is 14%, what is its pre-tax cost of debt? (Do not round intermediate calculations. Round the final answer to 2 decimal places.) Cost of debt b. If instead you know that the after-tax cost of debt is 6.8%, what is the cost of equity? (Do not round intermediate calculations. Round the final answer to 2 decimal places.) Cost of equity %
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