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Crosby Industries has a debtequity ratio of 1.6. Its WACC is 12 percent, and its cost of debt is 9 percent. There is no corporate

Crosby Industries has a debtequity ratio of 1.6. Its WACC is 12 percent, and its cost of debt is 9 percent. There is no corporate tax.

a. What is the companys cost of equity capital?

b. What would the cost of equity be if the debtequity ratio were 2?

c. What would the cost of equity be if the debtequity ratio were 0.4?

d. What would the cost of equity be if the debtequity ratio were zero?

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