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Kose, Inc. has a target debt-equity ratio of .65. Its WACC is 11.2%, and the tax rate is 35%. A. If Kose's cost of equity is 15%, what is its pretax

Kose, Inc. has a target debt-equity ratio of .65. Its WACC is 11.2%, and the tax rate is 35%.

A. If Kose's cost of equity is 15%, what is its pretax cost of debt?
B. If instead you know that the aftertax cost of debt is 6.4%, what is the cost of equity?

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Finance-8369501.xls

Kose, Inc. has a target debt-equity ratio of .65. Its WACC is 11.2%, and the tax rate is 35%.
A. If Kose's cost of equity is 15%, what is its pretax cost of debt?
B. If instead you know that the...

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