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WACC finance question 1 answer below » Blue Bull, Inc., has a target debt-equity ratio of .70. Its WACC is 8.4 percent, and the tax rate is 35 percent. Required: (a) If the company’s cost of equity is 11 percent, what is its pretax cost of debt? (Do not include the percent
sign (%). Round your answer to 2 decimal places (e.g., 32.16).) (b) If the aftertax cost of debt is 5.2 percent, what is the cost of equity? (Do not include the percent sign (%).
Round your answer to 2 decimal places (e.g., 32.16).) Jan 11 2014 06:20 AM
