Jungle inc has a target debtmdashequity ratio of 072 its, Ask an Expert

Finance

Jungle, Inc., has a target debt—equity ratio of 0.72. Its WACC is 11 percent, and the tax rate is 33 perce

(a) If Jungle's cost of equity is 16.5 percent, what is the pretax cost of debt? (Do not round your intermediate calculations.)

(b) If instead you know that the aftertax cost of debt is 7.3 percent, what is the cost of equity? (Do not round your intermediate calculations.)

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Financial Management, Finance

Category:- Financial Management
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