What is the cost of equity-what is the cost of debt

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Fyre Inc has a D/E ratio of 0.85. Its WACC is 9.9%, and the tax rate is 35%. a. If the company’s cost of equity is 14%, what is the cost of debt? b. If instead you know that the cost of debt is 10.5%, what is the cost of equity?

Reference no: EM13915307

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