Kose inc has a target debtndashequity ratio of 120 its wacc, Ask an Expert

Finance

Kose, Inc., has a target debt–equity ratio of 1.20. Its WACC is 8.6 percent, and the tax rate is 35 percent.

a. If Kose’s cost of equity is 16 percent, what is its pretax cost of debt?

b. If instead you know that the aftertax cost of debt is 3.5 percent, what is the cost of equity?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92357617

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