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Maroon Industries has a debt-equity ratio of 1.3. Its WACC is 8 percent, and its cost of debt is 5 percent. There is no corporate
Maroon Industries has a debt-equity ratio of 1.3. Its WACC is 8 percent, and its cost of debt is 5 percent. There is no corporate tax. Q. What is the company's cost of equity capital? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. b-1. What would the cost of equity be if the debt-equity ratio were 2 ? Note: Do not round intermediate calculations and enter your answer as a percent rounded to the nearest whole number, e.g., 32. b-2. What would the cost of equity be if the debt-equity ratio were 6 ? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16 . b-3. What would the cost of equity be if the debt-equity ratio were zero? Note: Do not round intermediate calculations and enter your answer as a percent rounded to the nearest whole number, e.g., 32
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