Question
Crosby Industries has a debtequity ratio of 1.2. Its WACC is 13 percent, and its cost of debt is 4 percent. There is no corporate
Crosby Industries has a debtequity ratio of 1.2. Its WACC is 13 percent, and its cost of debt is 4 percent. There is no corporate tax.
What is the companys 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.)
What would the cost of equity be if the debtequity ratio were .5?
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Accounting
Authors: Carl warren, James Reeve, Jonathen Duchac, Sheila Elworthy,
Volume 1, 2nd canadian Edition
176509739, 978-0176509736, 978-0176509743
