Kose, Inc., has a target debt-equity ratio of 1.40. Its WACC is 9.5 percent, and the tax rate is 35 percent. a. If the company's cost of equity is 12 percent, what is its pretax cost of debt? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Cost of debt 11.87 % b. If instead you know that the aftertax cost of debt is 5.5 percent, what is the cost of equity? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Cost of equity 17.68 % eBook &Resources eBook: 13.8 The Weighted Average Cost of Capital Check my work Previous attempt
