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Maxwell Industries has a debt-equity ratio of 1.5. Its WACC is 10 percent, and its cost of debt is 8 percent. The corporate tax rate
Maxwell Industries has a debt-equity ratio of 1.5. Its WACC is 10 percent, and its cost of debt is 8 percent. The corporate tax rate is 35 percent. (Do not include the percent signs (%). Round your answers to 2 decimal places. (e.g., 32.16)) Required: a. Maxwell's cost of equity capital is percent. b. Maxwell's unlevered cost of equity capital is percent. c. The cost of equity would be ___ percent if the debt-equity ratio were 2, ___percent if the debt-equity ratio were 1, and ___percent if the debt-equity ratio were 0
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