What is the cost of equity and pretax cost of debt

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Kose, Inc., has a target debt-equity ratio of 0.76. Its WACC is 11 percent, and the tax rate is 33 percent. Requirement 1: If Kose’s cost of equity is 15 percent, what is its pretax cost of debt? (Do not include the percent sign (%). Round your answer to 2 decimal places. (e.g., 32.16)) Pretax cost of debt % Requirement 2: If instead you know that the aftertax cost of debt is 5.9 percent, what is the cost of equity? (Do not include the percent sign (%). Round your answer to 2 decimal places. (e.g., 32.16))

Reference no: EM131060429

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