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Shadow Corp. has no debt but can borrow at 6.2 percent. The firms WACC is currently 8 percent, and the tax rate is 21 percent.

Shadow Corp. has no debt but can borrow at 6.2 percent. The firms WACC is currently 8 percent, and the tax rate is 21 percent.
a. What is the firms 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 20 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 50 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 20 percent debt, what will the company's WACC be? (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 50 percent debt, what will the company's WACC be? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

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