Kendall Corporation has no debt but can borrow at 8 percent. The firms WACC is currently 16 percent, and there is no corporate tax.

a. 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.

b. If the firm converts to 10 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.

c. If the firm converts to 60 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.

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

10 percent debt

60 percent debt