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Chandeliers has no debt but it can borrow at 6.1%. The firm has a WACC of 9.5% and tax rate is 35%. Whats the firms

Chandeliers has no debt but it can borrow at 6.1%. The firm has a WACC of 9.5% and tax rate is 35%.

  1. Whats the firms cost of equity?
  2. If the firm converts to 25% debt, what the equity cost will be?
  3. If the firm converts to 50% debt, what the equity cost will be?
  4. Whats the firms WACC at 25% debt?
  5. Whats the firms WACC at 50% debt?

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