Question: Ursula, Incorporated, has a target debt - equity ratio of 1 . 3 0 . Its WACC is 8 . 8 % , and the

Ursula, Incorporated, has a target debt-equity ratio of 1.30. Its WACC is 8.8%, and the tax rate is 23%.
a. If the company's cost of equity is 12%, what is its pretax cost of debt?
b. If instead you know that the aftertax cost of debt is 6.3% what is the cost of equity?

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