Rojo y Negro restaurants, Inc., has a target debt–equity ratio of 50%. Its WACC is 12 percent, and the tax rate is 25 percent.
If the cost of equity is 22 %, what is its pretax cost of debt?
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Rojo y Negro restaurants, Inc., has a target debt–equity ratio of 50%. Its WACC is 12 percent, and the tax rate is 25 percent.
If the cost of equity is 22 %, what is its pretax cost of debt?