Asked by bigpin
Jungle, Inc., has a target debt−equity ratio of 0.84. Its WACC is 11.5 percent, and the tax rate is 34 percent.
Required:
(a)
If Jungle's cost of equity is 14.5 percent, its pretax cost of debt is percent.
(b) If instead you know the aftertax cost of debt is 6.5 percent, the cost of equity is percent.
Required:
(a)
If Jungle's cost of equity is 14.5 percent, its pretax cost of debt is percent.
(b) If instead you know the aftertax cost of debt is 6.5 percent, the cost of equity is percent.
Answers
Answered by
Anonymous
tr56t6
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