Navarro Corporation has no debt but can borrow at 6 8 percent The firm's WACC is currently 9 2 percent, and the tax rate is 22 percent a What is the company's 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 20 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 50 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 20 percent debt, what is the company's 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 50 percent debt, what is the company's WACC (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e g , 32 16 )

Question

Navarro Corporation has no debt but can borrow at 6 8 percent  The firm's WACC is currently 9 2 percent, and the tax rate is 22 percent  a  What is the company's 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 20 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 50 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 20 percent debt, what is the company's 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 50 percent debt, what is the company's 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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Navarro Corporation has no debt but can borrow at 6.8 percent. The firm's WACC is currently 9.2 percent, and the tax rate is 22 percent.

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