Kose inc has a target debt equity ratio of 65 its wacc is, Ask an Expert

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Kose Inc has a target debt equity ratio of .65. It's WACC is 11.2 %, and the tax rate is 35%.

a. If Kose's cost of equity is 15 percent, what is its pretax cost of debt?

b. If instead you know that the aftertax cost of debt is 6.4%, what is the cost of equity?

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