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Gamer Co. has no debt. Its cost of capital is 9.9 percent. Suppose the company converts to a debtequity ratio of 1. The interest rate
Gamer Co. has no debt. Its cost of capital is 9.9 percent. Suppose the company converts to a debtequity ratio of 1. The interest rate on the debt is 7 percent. Ignore taxes for this problem. What is the companys new cost of equity? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Cost of equity % What is its new WACC? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) WACC %
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