Braxton Corp. has no debt but can borrow at 6.2 percent. The firms WACC is currently 8 percent, and the tax rate is 35 percent.

a.	What is the companys cost of equity?(Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Cost of equity

%

b.	If the firm converts to 20 percent debt, what will its cost of equity be?(Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Cost of equity

%

c.	If the firm converts to 50 percent debt, what will its cost of equity be?(Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Cost of equity

%

d-1	If the firm converts to 20 percent debt, what is the companys WACC?(Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

WACC

%

d-2	If the firm converts to 50 percent debt, what is the companys WACC?(Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

WACC

%