Question: a. Shadow Corp. has no debt but can borrow at 5.8 percent. The firm's WACC is currently 9.1 percent and the tax rate is 22

 a. Shadow Corp. has no debt but can borrow at 5.8

a. Shadow Corp. has no debt but can borrow at 5.8 percent. The firm's WACC is currently 9.1 percent and the tax rate is 22 percent. What is the company's cost of equity? (Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. If the company converts to 25 percent debt, what will its cost of equity be? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) If the company converts to 50 percent debt, what will its cost of equity be? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) d-1. If the company converts to 25 percent debt, what is the company's WACC? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) d-2. If the company converts to 50 percent debt, what is the company's WACC? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) C. Cost of equity b. Cost of equity c. Cost of equity d-1. WACC d-2. WACC % % % %

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