Question

Weston Industries has a debt–equity ratio of 1.5. Its WACC is 11 percent, and its cost of debt is 7 percent. The corporate tax rate is 35 percent.
a. What is Weston’s cost of equity capital?
b. What is Weston’s unlevered cost of equity capital?
c. What would the cost of equity be if the debt–equity ratio were 2? What if it were 1.0? What if it were zero?



$1.99
Sales1
Views79
Comments0
  • CreatedAugust 28, 2014
  • Files Included
Post your question
5000