If instead you know that the aftertax cost of debt is 59


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.)

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Financial Management: If instead you know that the aftertax cost of debt is 59
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