Kendall Corporation has no debt but can borrow at 7 percent. The firms WACC is currently 12 percent, and there is no corporate tax.

What is the companys cost of equity?

Note: Do not round intermediate calculations and enter your answer as a percent rounded to the nearest whole number, e.g., 32.

If the firm converts to 20 percent debt, what will its cost of equity be?

Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.

If the firm converts to 45 percent debt, what will its cost of equity be?

Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.

What is the companys WACC in parts (b) and (c)?

Note: Do not round intermediate calculations and enter your answers as a percent rounded to the nearest whole number, e.g., 32.