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Given the following information about a company: rE = 25% rD = 10% before tax D:E = 1:3 tc = 35% What is the cost

Given the following information about a company:

rE = 25%

rD = 10% before tax

D:E = 1:3

tc = 35%

What is the cost of equity of a similar business risk, all-equity financed company?

Given the information in question above, what would be the rE and rWACC if the company were to change its gearing ratio from 1:3 to 1:2?

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