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Brown Industries has a debt-equity ratio of 1.2. Its WACC is 11 percent, and its cost of debt is 5 percent. There is no corporate
Brown Industries has a debt-equity ratio of 1.2. Its WACC is 11 percent, and its cost of debt is 5 percent. There is no corporate tax. a. What is the company's cost of equity capital? (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? (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? (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? (Do not round intermediate calculations and enter your answer as a percent rounded to the nearest whole number, e.g., 32.) a. 18.20 % b-1. % Cost of equity Cost of equity Cost of equity Cost of equity b-2. % b-3. %
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