Malkin Corp has no debt but can borrow at 6 5 The firm 's WACC is currently 10 , and there is no corporate tax Required (a) What is Malkin 's cost of equity (b) If the firm converts to 30 debt, what will its cost of equity be (c) If the firm converts to 55 debt, what will its cost of equity be (d) What is Malkin 's WACC in part (b) and part (c)

Question: Malkin Corp. has no debt but can borrow at 6.5%. The firm's WACC is currently 10%, and there is no corporate tax. Required: (a) What

Malkin Corp. has no debt but can borrow at 6.5%. The firm's WACC is currently 10%, and there is no corporate tax.

Required:
(a) What is Malkin's
(b) If the firm converts to 30% debt, what will its be?
(c) If the firm converts to 55% debt, what will its be?
(d) What is Malkin's WACC in part (b) and part (c)?

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