Shadow Corp has no debt but can borrow at 5 6 percent The firms WACC is currently 9 4 percent and the tax rate is 25 percent a What is the companys 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 35 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 65 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 35 percent debt, what is the companys 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 65 percent debt, what is the companys WACC (Do not round intermediate calculations Enter your answer as a percent rounded to 2 decimal places, e g , 32 16 )

Question

Shadow Corp  has no debt but can borrow at 5 6 percent  The firms WACC is currently 9 4 percent and the tax rate is 25 percent  a  What is the companys 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 35 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 65 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 35 percent debt, what is the companys 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 65 percent debt, what is the companys WACC  (Do not round intermediate calculations  Enter your answer as a percent rounded to 2 decimal places, e g , 32 16 )

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a.	What is the companys 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 35 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 65 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 35 percent debt, what is the companys 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 65 percent debt, what is the companys WACC? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Question

Shadow Corp. has no debt but can borrow at 5.6 percent. The firms WACC is currently 9.4 percent and the tax rate is 25 percent.

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