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Skillet Industries has a debt-equity ratio of 1.5. Its WACC is 9 percent and its cost of debt is 5.5 percent. The corporate tax rate

Skillet Industries has a debt-equity ratio of 1.5. Its WACC is 9 percent and its cost of debt is 5.5 percent. The corporate tax rate is 35 percent.

a. What is the company's cost of equity capital?

b. What is the company's unlevered cost of capital?

c. What would the cost of equity be if the debt-equity ratio were 2? What if it were 1.0? What if it were zero?

(How did you determine these answers.

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