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Chandeliers Corp. has no debt but can borrow at 7.1 percent The firm?s WACC is currently 8.9 percent and the tax rate is 35 percent
Chandeliers Corp. has no debt but can borrow at 7.1 percent The firm?s WACC is currently 8.9 percent and the tax rate is 35 percent a. What s the company?s cost of equity? (Round your answer to 2 decimal places. (e.g., 32.16)) Cost of equity % b. If the firm converts to 25 percent debt, what will its cost of equity be? (Round your answer to 2 decimal places. (e.g., 32.16)) Cost of equity % c. If the firm converts to 60 percent debt, what will its cost of equity be?(Round your answer to 2 decimal places. (e.g., 32.16)) Cost of equity % d-1 If the firm converts to 25 percent debt, what is the company?s WACC?(Round your answer to 2 decimal places. (e.g., 32.16)) WACC % d-2 If the firm converts to 60 percent debt, what is the company?s WACC?(Round your answer to 2 decimal places. (e.g., 32.16)) WACC %
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