Paget inc has a target debtequity ratio of 125 its wacc is, Ask an Expert

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Paget, Inc., has a target debt?equity ratio of 1.25. Its WACC is 9.2 percent, and the tax rate is 35 percent.

a. If the company's cost of equity is 14 percent, what is its pretax cost of debt?

b. If instead you know that the aftertax cost of debt is 6.8 percent, what is the cost of equity?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9988144

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