The cost of equity is percent

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Reference no: EM132061415

Jungle, Inc., has a target debt–equity ratio of 1.05. Its WACC is 9.4 percent, and the tax rate is 35 percent. (Do not include the percent signs (%). Round your answers to 2 decimal places. (e.g., 32.16))

Please show all work and explain steps.

Required:

(a) If Jungle's cost of equity is 14 percent, its pretax cost of debt is percent.

(b) If instead you know the aftertax cost of debt is 6.8 percent, the cost of equity is percent.

Reference no: EM132061415

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