What is the pretax cost of debt and cost of equity

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Reference no: EM131998606

Jungle, Inc., has a target debt—equity ratio of 0.72. Its WACC is 11 percent, and the tax rate is 33 perce

(a) If Jungle's cost of equity is 16.5 percent, what is the pretax cost of debt? (Do not round your intermediate calculations.)

(b) If instead you know that the aftertax cost of debt is 7.3 percent, what is the cost of equity? (Do not round your intermediate calculations.)

Reference no: EM131998606

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