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Find return on Equity: A firm currently has a debt-equity ratio of 2/3. The debt, which is virtually riskless, pays an interest rate of 6%.

image text in transcribedFind return on Equity:

A firm currently has a debt-equity ratio of 2/3. The debt, which is virtually riskless, pays an interest rate of 6%. The expected rate of return on the equity is 16 \%. What is the Weighted-Average Cost of Capital if the firm pays no taxes? Enter your answer as a percentage rounded to two decimal places. Do not include the percentage sign in your answer. WACC = Correct response: 120.02 What would happen to the expected rate of return on equity if the firm changed its debt-equity ratio to 2/3 ? Assume the firm pays no taxes, the cost of debt does not change, and that the original WACC is 12.00%. Enter your answer as a percentage rounded to two decimal places. Do not include the percentage sign as part of your

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