Question: Shadow Corp. has no debt but can borrow at 7 . 6 percent. The rm ' s WACC is currently 9 . 4 percent, and

Shadow Corp. has no debt but can borrow at 7.6 percent. The rm's WACC is currently 9.4 percent, and the tax rate is 25 percent.
A. What is the firms cost of equity?
B. If the firm converts to 25 percent debt, what will its cost of equity be?
C. If the firm converts to 50 percent debt, what will its cost of equity be?
D-1. If the firm converts to 25 percent debt, what will the companys WACC be?
D-2. If the firm converts to 50 percent debt, what will the companys WACC be?

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