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Navarro Corporation has no debt but can borrow at 5 . 5 percent. The firm s WACC is currently 9 percent, and the tax rate

Navarro Corporation has no debt but can borrow at 5.5 percent. The firms WACC is currently 9 percent, and the tax rate is 21 percent.
a.
What is the companys cost of equity? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g.,32.16.)
b. If the firm converts to 40 percent debt, what will its cost of equity be?(Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g.,32.16.)
c. If the firm converts to 70 percent debt, what will its cost of equity be?(Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g.,32.16.)
d-1. If the firm converts to 40 percent debt, what is the companys WACC? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g.,32.16.)
d-2. If the firm converts to 70 percent debt, what is the companys WACC? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g.,32.16.)

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