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

Solar Industries has a debt$-$equity ratio of $\mathrm{.}7.$ Its WACC is $8\mathrm{.}9$ percent, and its cost of debt

is $6\mathrm{.}2$ percent. The corporate tax rate is $21$ percent.

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

calculations and enter your onswer 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

Intermedlate colculatlons and enter your onswer 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

Intermedlate colculatlons and enter your answer as a percent rounded to $2$

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

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

Intermedlate colculatlons and enter your onswer as a percent rounded to $2$

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

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

Intermedlate colculatlons and enter your onswer as a percent rounded to $2$

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