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Skillet Industries has a debtequity ratio of 1.8. Its WACC is 8.3 percent, and its cost of debt is 6.3 percent. The corporate tax rate
Skillet Industries has a debtequity ratio of 1.8. Its WACC is 8.3 percent, and its cost of debt is 6.3 percent. The corporate tax rate is 35 percent. |
a. What is the company's cost of equity capital? (Round your answer to 2 decimal places. (e.g., 32.16)) Cost of equity capital 15.34 % b. What is the company's unlevered cost of equity capital? (Round your answer to 2 decimal places. (e.g., 32.16)) Unlevered cost of equity capital % C-1 What would the cost of equity be if the debt-equity ratio were 2? (Round your answer to 2 decimal places. (e.g., 32.16)) Cost of equity % C-2 What would the cost of equity be if the debt-equity ratio were 1.0? (Round your answer to 2 decimal places. (e.g., 32.16)) Cost of equity % C-3 What would the cost of equity be if the debt-equity ratio were zero? (Round your answer to 2 decimal places. (e.g., 32.16)) Cost of equity %
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