Note: Answers should be clearly labeled (for example, Answer = $2,300; Answer = A is preferred since )

Only if there are more than 6 decimal points, round up to 6 decimal points (for example, 21.237888743 => 21.237889; 21.233333333 => 21.233333).

Use the following symbols for arithmetic operations: Instructions: Braxton Corp. has no debt but can borrow at 7 percent. The firms WACC is currently 8.8 percent, and the tax rate is 35 percent. If the firm converts to 15 percent debt, what will its cost of equity be?