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Skillet Industries has a debtequity ratio of 1.2. Its WACC is 9.4 percent, and its cost of debt is 6.5 percent. The corporate tax rate

Skillet Industries has a debtequity ratio of 1.2. Its WACC is 9.4 percent, and its cost of debt is 6.5 percent. The corporate tax rate is 35 percent.


a.

What is the companys cost of equity capital? (Round your answer to 2 decimal places. (e.g., 32.16))



b.

What is the companys unlevered cost of equity capital? (Round your answer to 2 decimal places. (e.g., 32.16))

Unlevered cost of equity ca
1

What would the cost of equity be if the debtequity ratio were 2? (Round your answer to 2 decimal places. (e.g., 32.16))

c-2

What would the cost of equity be if the debtequity ratio were 1.0? (Round your answer to 2 decimal places. (e.g., 32.16))

c-3

What would the cost of equity be if the debtequity ratio were zero? (Round your answer to 2 decimal places. (e.g., 32.16))


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