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Maroon Industries has a debt - equity ratio of 1 . 5 . Its WACC is 1 1 percent, and its cost of debt is
Maroon Industries has a debtequity ratio of Its WACC is percent, and its
cost of debt is percent. There is no corporate tax.
a What is the company's cost of equity capital?
Note: Do not round intermediate calculations and enter your answer as a
percent rounded to decimal places, eg
b What would the cost of equity be if the debtequity ratio were
Note: Do not round intermediate calculations and enter your answer as a
percent rounded to the nearest whole number, eg
b What would the cost of equity be if the debtequity ratio were
Note: Do not round intermediate calculations and enter your answer as a
percent rounded to decimal places, eg
b What would the cost of equity be if the debtequity ratio were zero?
Note: Do not round intermediate calculations and enter your answer as a
percent rounded to the nearest whole number, eg
Answer is complete but not entirely correct.
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