Kose inc has a target debtndashequity ratio of 130 its wacc, Ask an Expert

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Kose, Inc., has a target debt–equity ratio of 1.30. Its WACC is 9.3 percent, and the tax rate is 38 percent.

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 6.2 percent, what is the cost of equity?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91613914

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