I know that the answer for part A is 4.69% and the answer for part B is 14.39%. I need to know the method used in getting part B. Thank you.
Jungle, Inc., has a target debt−equity ratio of 0.81. Its WACC is 10.5 percent, and the tax rate is 34 percent. (Do not include the percent sign (%). Round your answers to 2 decimal places, e.g. 32.16.)
(a) If Jungle's cost of equity is 16.5 percent, its pretax cost of debt is _____ percent.
(b) If instead you know the aftertax cost of debt is 5.7 percent, the cost of equity is _____ percent.