Question: Problem 1 2 : Twice Shy Industries has a debt - equity ratio of 1 . 6 . Its WACC is 8 . 4 %

Problem 12: Twice Shy Industries has a debt-equity ratio of 1.6. Its WACC is 8.4%, and its cost of debt is 6.9%. The corporate tax rate is 35%.
a. What is the company's cost of equity capital?
b. What is the company's unlevered cost of equity capital?
c-1 What would the cost of equity be if the debt-equity ratio were 2?
Problem 1 2 : Twice Shy Industries has a debt -

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