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Solar Industries has a debt - equity ratio of 1 . 5 . Its WACC is 7 . 7 percent, and its cost of debt

Solar Industries has a debt-equity ratio of 1.5. Its WACC is 7.7 percent, and its cost of debt
is 5.4 percent. The corporate tax rate is 25 percent.
a. What is the company's cost of equity capital? (Do not round intermediate
calculations and enter your answer as a percent rounded to 2 decimal places,
e.g.,32.16.)
b. What is the company's unlevered cost of equity capital? (Do not round
intermediate calculations and enter your answer as a percent rounded to 2
decimal places, e.g.,32.16.)
c-1. What would the cost of equity be if the debt-equity ratio were 2?(Do not round
intermediate calculations and enter your answer as a percent rounded to 2
decimal places, e.g.,32.16.)
c-2. What would the cost of equity be if the debt-equity ratio were 1?(Do not round
intermediate calculations and enter your answer as a percent rounded to 2
decimal places, e.g.,32.16.)
c-3. What would the cost of equity be if the debt-equity ratio were zero? (Do not round
intermediate calculations and enter your answer as a percent rounded to 2
decimal places, e.g.,32.16.)
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