Debbie's Cookies has a return on assets of 9.9 percent and a cost of equity of...

Question

Question

Debbies Cookies has a return on assets of 9.9 percent and a cost of equity of 11.1 percent. What is the pretax cost of debt

Answer 1

Answer #1

Cost of Equity 0.111 0.111 0.111 0.91 Cost of Debt 0.91 Cost of Debt Cost of Debt Cost of Debt Cost of Debt Return on asset+R

Answer 2

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