Weston Industries has a debt-to-equity ratio of 1.5. Its WACC is 11 percent, and its cost of
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Question:
Weston Industries has a debt-to-equity ratio of 1.5. Its WACC is 11 percent, and its cost of debt is 7 percent. The corporate tax rate is 35 percent. (Do not round intermediate calculations. Round the final answers to 2 decimal places.)
a. What is Weston's cost of equity capital?
Cost of equity capital %?
b. What is Weston's unlevered cost of equity capital?
Unlevered cost of equity capital%?
c-1. What would the cost of equity be if the debt-to-equity ratio were 2?
Cost of equity %?
c-2. What would the cost of equity be if the debt-to-equity ratio were 1.0?
Cost of equity %?
c-3. What would the cost of equity be if the debt-to-equity ratio were 0?
Cost of equity%?
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