Kose, Inc., has a target debt–equity ratio of 0.85. Its WACC is 11 percent, and the tax rate is 33 percent., ,Requirement 1:,If Kose’s cost of equity is 15.5 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)) , , Pretax cost of debt % ,, ,Requirement 2:,If instead you know that the aftertax cost of debt is 7.1 percent, what is the cost of equity? (Do not include the percent sign (%). Round your answer to 2 decimal places. (e.g., 32.16)) , , Cost of equity % ,
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