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Calculating WACC. Crosby Industries has a debt-equity ratio of 1.5. Its WACC is 9 percent, and its cost of debt is 6 percent. There is
Calculating WACC. Crosby Industries has a debt-equity ratio of 1.5. Its WACC is 9 percent, and its cost of debt is 6 percent. There is no corporate tax. a. What is Crosby's cost of equity capital? b. What would the cost of equity be if the debt-equity ratio were 2.0? What if it were 0.5? What if it were zero
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