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

Required:
(a)	What is Malkins cost of equity?

Cost of equity

%

(b)	If the firm converts to 20 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
20 percent	%
45 percent	%