If jungles cost of equity is 155 percent what is the pretax, Financial Management

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If jungles cost of equity is 155 percent what is the pretax

Jungle, Inc., has a target debt—equity ratio of 0.77. Its WACC is 11 percent, and the tax rate is 35 percent.

(a) If Jungle's cost of equity is 15.5 percent, what is the pretax cost of debt? Show step by step. (Do not round your intermediate calculations.)

(b) If instead you know that the aftertax cost of debt is 6.4 percent, what is the cost of equity? Show step by step (Do not round your intermediate calculations.)

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Financial Management: If jungles cost of equity is 155 percent what is the pretax

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