Bermuda Cruises issues only common stocks and coupon bonds. The firm has a debt-equity ratio of 0.45. The cost of equity is 17.6 percent. Please answer: What is the pre-tax cost of the company debt if weighted average costs of the company is 13.5% and the firm's tax rate is 35 percent?

Fama's Llamas has a WACC of 8.8 percent. The company's cost of equity is 12 percent, and its pretax cost of debt is 6.8 percent. The tax rate is 22 percent. What is the company's target debt - equity ratio? Note: Do not round intermediate calculations and round your answer to 4 decimal places, e.g .. 32.1616.

Jones Soda estimates that its required return on equity is 11.0 percent and the yield to maturity on its debt is 6.0 percent. The company's equity-to-asset ratio is 0.2 and the marginal tax rate is 30%. What is the company's weighted average cost of capital? Enter your answer as a percent and round to two decimals, but don't include the % sign. Numeric Response

Ursala, Incorporated, has a target debt-equity ratio of 1.20. Its WACC is 8.7 percent, and the tax rate is 25 percent. a. If the company's cost of equity is 13 percent, what is its pretax cost of debt? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. If instead you know that the aftertax cost of debt is 5.8 percent, what is the cost of equity? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. Cost of debt b. Cost of equity 6.31 % 13.39 %

Garcia Company has no debt. Its cost of capital is 10.8 percent. Suppose the company converts to a debt-equity ratio of 1. The interest rate on the debt is 7.9 percent. Ignore taxes for this problem. What is the company’s new cost of equity? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. What is its new WACC? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.

The DENC Corporation has the unlevered cost equity of 10%. The company wants to expand its operation by issuing new debt. If the cost of debt for the company is 6% and the corporate tax rate is 30%. What must be the debt-equity ratio of the company if the targeted cost of equity is 12%? Calculate the debt-equity (D/E) ratio. (A) The debt-equity (D/E) ratio is 0.50 (B) The debt-equity (D/E) ratio is 0.60 (C) The debt-equity (D/E) ratio is 2.80 (D) The debt-equity (DE) ratio is 0.71