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Malkin Corp. has no debt but can borrow at 6.5 percent. The firms WACC is currently 10 percent, and there is no corporate tax. Required:

Malkin Corp. has no debt but can borrow at 6.5 percent. The firms WACC is currently 10 percent, and there is no corporate tax. Required: (a) What is Malkins cost of equity? Cost of equity % (b) If the firm converts to 10 percent debt, what will its cost of equity be? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).) Cost of equity % (c) If the firm converts to 45 percent debt, what will its cost of equity be? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).) Cost of equity % (d) What is Malkins WACC in part (b) and (c)? (Do not round intermediate calculations. Enter your answers as a percentage rounded to the nearest whole number (e.g., 32).) WACC 10 percent % 45 percent %

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