Question: Kose Inc has a target debt to equity ratio of 0 65 Its

Kose Inc. has a target debt-to-equity ratio of 0.65. Its WACC is 11.2 percent, and the tax rate is 35 percent.
a. If Kose’s cost of equity is 15 percent, what is its pre-tax cost of debt?
b. If instead you know that the after-tax cost of debt is 6.4 percent, what is the cost of equity?
Finding the Weighted Average Cost of Capital



Sale on SolutionInn
Sales0
Views104
Comments
  • CreatedJune 17, 2015
  • Files Included
Post your question
5000