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Crosby Industries has a debt-equity ratio of 1.5. Its WACC is 11 percent, and its cost of debt is 8 percent. There is no corporate
Crosby Industries has a debt-equity ratio of 1.5. Its WACC is 11 percent, and its cost of debt is 8 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? What would the cost of equity be if the debt-equity ratio were .7
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