Question: 6 Problem 14-13 Calculeting WACC Shadow Corp, has no debt but can borrow at 76 percent. The fims WACC Is currently 94 percent, and the
6 Problem 14-13 Calculeting WACC Shadow Corp, has no debt but can borrow at 76 percent. The fims WACC Is currently 94 percent, and the tax rate is 35 percent a. What is the firm's cost of equity? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e-g. 32.16.) Cost of equity [ 7% 10 points Skipped b. If the firm converts to 25 percent debt, what will its cost of equity be? (Do not round intermediate calculations. Enter your answer os a percent rounded to 2 decimal places, e.g.32.16.) Cost of equity % eBook c. If the firm converts to 50 percent debt, what will its cost of equity be? (Do not round intermediate calculations. Enter your answer Print as a percent rounded to 2 decimal places, e.g., 32.16.) Cost of equity % References d-1 If the firm converts to 25 percent debt, what will the company's WACC be? (Do not round intermediate calculations. Enter your answer es a percent rounded to 2 decimal places, e.g. 32.16.) d-2 If the firm converts to 50 percent debt, what will the company's WACC be? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g. 3216.) Reference links
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