#6

Maroon Industries has a debt-equity ratio of 1.7. 1ts WACC is 11 percent, and its cost of debt is 8 percent. There is no corporate tax. a. What is the company's cost of equity capital? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16 . b-1. What would the cost of equity be if the debt-equity ratio were 2 ? Note: Do not round intermediate calculations and enter your answer as a percent rounded to the nearest whole number, e.g. 32 . b-2. What would the cost of equity be if the debt-equity ratio were .7? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16 . b-3. What would the cost of equity be if the debt-equity ratio were zero? Note: Do not round intermediate calculations and enter your answer as a percent rounded to the nearest whole number, e.g., 32