Shadow Corp has no debt but can borrow at 7 8 percent The firms WACC is currently 9 6 percent, and the tax rate is 35 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 ) Cost of equity b If the company converts to 30 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 ) Cost of equity c If the company 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 ) Cost of equity d 1 If the company converts to 30 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 ) WACC d 2 If the company 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 ) WACC

Question

Shadow Corp  has no debt but can borrow at 7 8 percent  The firms WACC is currently 9 6 percent, and the tax rate is 35 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 ) Cost of equity   b  If the company converts to 30 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 ) Cost of equity   c  If the company 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 ) Cost of equity   d 1  If the company converts to 30 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 ) WACC   d 2  If the company 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 ) WACC

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Shadow Corp. has no debt but can borrow at 7.8 percent. The firms WACC is currently 9.6 percent, and the tax rate is 35 percent.

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