Aftertax cost of debt-what is the cost of equity

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Reference no: EM13943046

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?

Reference no: EM13943046

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