Previously tried answers and work to question that also got C1, C2, C3 wrong...but had A/B correct.

http://www.chegg.com/homework-help/questions-and-answers/skillet-industries-debt-equity-ratio-11-wacc-96-percent-cost-debt-72-percent-corporate-tax-q6360511?trackid=7c3aa155&strackid=14c650c7&ii=8

http://www.chegg.com/homework-help/questions-and-answers/weston-industries-debt-equity-ratio-11-wacc-96-percent-cost-debt-72-percent-corporate-tax--q9742669?trackid=7c3aa155&strackid=14c650c7&ii=9

Twice Shy Industries has a debtequity ratio of 1.1. Its WACC is 9.6 percent, and its cost of debt is 7.2 percent. The corporate tax rate is 35 percent.

a.	What is the companys cost of equity capital? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.

Cost of equity capital

15.01%

This answer is correct!

b.	What is the companys unlevered cost of equity capital? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Unlevered cost of equity capital

11.73%

This answer is corect!

c-1	What would the cost of equity be if the debtequity ratio were 2? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Cost of equity

%

c-2	What would the cost of equity be if the debtequity ratio were 1.0? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Cost of equity

%

c-3	What would the cost of equity be if the debtequity ratio were zero? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Cost of equity

%