Answer Happy

Starset, Inc., has a target debt-equity ratio of 0.86. Its WACC is 11 percent, and the tax rate is 35 percent. If the company's cost of equity is 15.5 percent, what is the pretax cost of debt? If instead you know that the aftertax cost of debt is 71 percent, what is the cost of equity?
Viserion, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with 25 years to maturity that is quoted at 91 percent of face value. The issue makes semiannual payments and has an embedded cost of 5 percent annually. What is the company's pretax cost of debt? O 5.68% O 6.81% 4.32% O 6.25% 05.11% If the tax rate is 24 percent, what is the aftertax cost of debt? 4.32% 3.88% 4.75% 6.04% 5.68%