Fyre inc has a target debtminusequity ratio of 150 its wacc, Ask an Expert

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Fyre, Inc., has a target debt−equity ratio of 1.50. Its WACC is 9.7 percent, and the tax rate is 40 percent.

If the company’s cost of equity is 14 percent, what is its pretax cost of debt? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

If instead you know that the aftertax cost of debt is 5 percent, what is the cost of equity? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

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Financial Management, Finance

Category:- Financial Management
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