debt equity ratio :60%

Q6: Shadow Corp. has no debt but can borrow at interest rate of 6.5 percent. The firm's WACC is currently 9.8 percent, and the tax rate is 35 percent. 5 a. What is the company's cost of equity (in unlevered form)? b. If the company converts to (see appendix) percent debt-equity ratio, what will its cost of equity be? d. What is the levered company's WACC