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a) 20.68 b) is not 8.27 c) is not 23.90 c) is not 17.45 c) is not 11 Weston Industries has a debt-equity ratio of
a) 20.68
b) is not 8.27
c) is not 23.90
c) is not 17.45
c) is not 11
Weston Industries has a debt-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. What is Westons cost of equity capital? (Do not round intermediate calculations and round your final answer to 2 decimal places, (e.g., 32.16)) What is Weston's unlevered cost of equity capital? (Do not round intermediate calculations and round your final answer to 2 decimal places, (e.g., 32.16)) What would the cost of equity be if the debt-equity ratio were 2? (Do not round intermediate calculations and round your final answer to 2 decimal places, (e.g., 32.16)) What would the cost of equity be if the debt-equity ratio were 1.0? (Do not round intermediate calculations and round your final answer to 2 decimal places, (e.g., 32.16)) What would the cost of equity be if the debt-equity ratio were zero? (Do not round intermediate calculations and round your final answer to 2 decimal places, (e.g., 32.16))Step by Step Solution
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