Review problem related to the clifford inc

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Question: WACC. Clifford, Inc., has a target debt-equity ratio of .85. Its WACC is 8.1 percent, and the tax rate is 35 percent.

a. If the company's cost of equity is 11 percent, what is its pretax cost of debt?

b. If the aftertax cost of debt is 3.8 percent, what is the cost of equity?

The response must be typed, single spaced, must be in times new roman font (size 12) and must follow the APA format.

Reference no: EM131732783

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Review problem related to the clifford inc : WACC. Clifford, Inc., has a target debt-equity ratio of .85. Its WACC is 8.1 percent, and the tax rate is 35 percent.
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