Question: Please show work by hand. 9.8 Kayla, Inc., has a target debt-equity ratio of 0.60. Its WACC is 13.80 percent, and the tax rate is

Please show work by hand. 9.8 Kayla, Inc., has a target

Please show work by hand.

9.8 Kayla, Inc., has a target debt-equity ratio of 0.60. Its WACC is 13.80 percent, and the tax rate is 35 percent. a. (5 points) If Kayla's cost of equity is 18 percent, what is its pretax cost of debt? b. (5 points) If the after-tax cost of debt is 7.5 percent, what is the cost of equity

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