Clifford inc has a target debtequity ratio of 72 if the


Clifford, Inc., has a target debt–equity ratio of .72. Its WACC is 8.6 percent, and the tax rate is 30 percent.

a. If the company’s cost of equity is 11.2 percent, what is its pretax cost of debt?

b. If the aftertax cost of debt is 5.4 percent, what is the cost of equity?

Request for Solution File

Ask an Expert for Answer!!
Financial Management: Clifford inc has a target debtequity ratio of 72 if the
Reference No:- TGS02362961

Expected delivery within 24 Hours