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Jungle Inc has a target debt equity ratio of 089 Its WACC is 115 percent and the tax rate is 34 percent Required If Jungles cost of equity is 145 percent what is the pretax cost of debt

Jungle, Inc., has a target debt-equity ratio of 0.89. Its WACC is 11.5 percent, and the tax rate is 34 percent. Required: If Jungle's cost of equity is 14.5 percent, what is the pretax cost of debt? (Do not round your intermediate calculations.) If instead you know that the aftertax cost of debt is 5.9 percent, what is the cost of equity? (Do not round your intermediate calculations.)
 

Apr 02 2020 View more View Less

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