Hello!

Can you please help me with these? I am stuck - but I did get the first one.

Weston Industries has a debt-equity ratio of 1.6. Its WACC is 7.8 percent, and its cost of debt is 5.5 percent. The corporate tax rate is 21 percent.

a.What is the company's cost of equity capital?

b.What is the company's unlevered cost of equity capital?

c-1.What would the cost of equity be if the debt-equity ratio were 2?

c-2.What would the cost of equity be if the debt-equity ratio were 1.0?

c-3.What would the cost of equity be if the debt-equity ratio were zero?

I calculated A; the cost of equity capital to be 13.33%.

Thank you!