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Seat has a debtequity ratio of 1. Its WACC is 10 percent, and its cost of debt is 5 percent. The corporate tax rate is

Seat has a debtequity ratio of 1. Its WACC is 10 percent, and its cost of debt is 5 percent. The corporate tax rate is 25 percent.

a) Find cost of equity capital.

b) What is the unlevered cost of equity capital?

c) What would the cost of equity be if the debtequity ratio was 2

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