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answer before 12 and ill thumbs up! Maroon Industries has a debt-equity ratio of 1.3. Its WACC is 12 percent, and its cost of debt
answer before 12 and ill thumbs up!
Maroon Industries has a debt-equity ratio of 1.3. Its WACC is 12 percent, and its cost of debt is 6 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 .4 ? 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., 32Step by Step Solution
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