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Lenovo Computers has a debt to equity ratio of 3, and they are paying an interest rate of 6%. The tax rate is 15%. The

Lenovo Computers has a debt to equity ratio of 3, and they are paying an interest rate of 6%. The tax rate is 15%.

The Weighted Average Cost of Capital is 10.8%

1. What is cost of equity capital for Lenovo computers?

2. What is Lenovos unlevered cost of equity capital?

3. Which would be the WACC if the Debt to Equity ratio changes to 2?

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