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Calculating WACC. Maxwell Industries has a debt-equity ratio of 1.5. Its WACC is 10percen, and its cost of debt is 7percent . The corporate tax
Calculating WACC. Maxwell Industries has a debt-equity ratio of 1.5. Its WACC is 10percen, and its cost of debt is 7percent . The corporate tax rate is 35percent. a. What is the company's cost of equity capital? b.What is the company 's unlevered cost of equity capital? c. What would the cost of equity be if the debt-equity ratio were 2? what if it were 1.0? what if it were zero?
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