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Shadow Corp. has no debt but can borrow at 8%. The firm's WACC is currently 9.8% and the tax rate is 35%. a) What is

Shadow Corp. has no debt but can borrow at 8%. The firm's WACC is currently 9.8% and the tax rate is 35%.

a) What is the company's cost of equity?

b) If the company coverts to 15% debt, what will its cost of equity be and WACC? (Please show formulas and work for this question)

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