Problem $16-12$ Calculating WACC $[$LO$1]$

Solar Industries has a debt$-$equity ratio of $\mathrm{.}9.$ Its WACC is $8\mathrm{.}8$ percent, and its cost of debt

is $6\mathrm{.}3$ percent. The corporate tax rate is $25$ percent.

a$.$ What is the company's cost of equity capital? $($Do not round intermediate

calculations and enter your answer as a percent rounded to $2$ decimal places,

e$.$g$.,32\mathrm{.}16.)$

b$.$ What is the company's unlevered cost of equity capital? $($Do not round

intermediate calculations and enter your answer as a percent rounded to $2$

decimal places, e$.$g$.,32\mathrm{.}16.)$

c$-1.$ What would the cost of equity be if the debt$-$equity ratio were $2?($Do not round

intermediate calculations and enter your answer as a percent rounded to $2$

decimal places, e$.$g$.,32\mathrm{.}16.)$

c$\mathrm{.}2.$ What would the cost of equity be if the debt$-$equity ratio were $1?($Do not round

intermediate calculations and enter your answer as a percent rounded to $2$

decimal places, e$.$g$.,32\mathrm{.}16.)$

c$\mathrm{.}3.$ What would the cost of equity be if the debt$-$equity ratio were zero? $($Do not round

intermediate calculations and enter your answer as a percent rounded to $2$

decimal places, e$.$g$.,32\mathrm{.}16.)$