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Shadow Corp. has no debt but can borrow at 6 percent. The firm's WACC is currently 11 percent, and the tax rate is 35 percent.

Shadow Corp. has no debt but can borrow at 6 percent. The firm's WACC is currently 11 percent, and the tax rate is 35 percent. 1. If the firm converts to 30 percent debt, its cost of equity will be? 2. If the firm converts to 60 percent debt, its cost of equity will be? 3. Shadows WACC in parts (b) and (c) is percent and percent, respectively

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