$10$

Problem $16-13$ Calculating WACC

Navarro Corporation has no debt but can borrow at $5\mathrm{.}2$ percent. The firm's WACC is currently $8\mathrm{.}9$ percent and the tax rate is $24$ percent.

a$.$ What is the company's cost of equity? $($Do not round intermediate calculations and enter your answer as a percent rounded to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

b$.$ If the firm converts to $25$ percent debt, what will its cost of equity be$?($Do not round intermediate calculations and enter your answer as a percent rounded to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

c$.$ If the firm converts to $45$ percent debt, what will its cost of equity be$?($Do not round intermediate calculations and enter your answer as a percent rounded to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

d$-1.$ If the firm converts to $25$ percent debt, what is the company's WACC? $($Do not round intermediate calculations and enter your answer as a percent rounded to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

d$-2.$ If the firm converts to $45$ percent debt, what is the company's WACC? $($Do not round intermediate calculations. Enter your answer as a percent rounded to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

$\backslash$table$[[$a$.$ Cost of equity,,$\%$