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Gamer Co. has no debt. Its cost of capital is 9.5 percent. Suppose the company converts to a debtequity ratio of 1. The interest rate
Gamer Co. has no debt. Its cost of capital is 9.5 percent. Suppose the company converts to a debtequity ratio of 1. The interest rate on the debt is 6.6 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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