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Please solve using Excel and show the formulas. Maroon Industries has a debt-equity ratio of 1.5. Its WACC is 11 percent, and its cost of
Please solve using Excel and show the formulas.
| Maroon Industries has a debt-equity ratio of 1.5. Its WACC is 11 percent, and its cost of debt is 8 percent. There is no corporate tax. | |||
| a. What is the companys cost of equity capital? | |||
| b-1. What would the cost of equity be if the debt-equity ratio were 2? | |||
| b-2. What would the cost of equity be if the debt-equity ratio were .7? | |||
| b-3. What would the cost of equity be if the debt-equity ratio were zero? | |||
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Governing The Modern Corporation Capital Markets Corporate Control And Economic Performance
Authors: Roy C. Smith, Ingo Walter
1st Edition
0195171675,0199924015
