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Crosby Industries has a debt-equity ratio of 1.5. Its WACC is 9.1 percent, and its cost of debt is 5.5 percent. There is no corporate

Crosby Industries has a debt-equity ratio of 1.5. Its WACC

is 9.1 percent, and its cost of debt is 5.5 percent. There is no corporate tax.

a. What is the company'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 .5? What if it were zero?

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