Paget inc has a target debt equity ratio of 160 its wacc is


Paget, Inc., has a target debt equity ratio of 1.60. Its WACC is 7.8 percent, and the tax rate is 40 percent.

a. If the company’s cost of equity is 16 percent, what is its pretax cost of debt?

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Financial Management: Paget inc has a target debt equity ratio of 160 its wacc is
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