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Twice Shy 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

Twice Shy 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.

What would the cost of equity be if the debtequity ratio were 2?

Cost of equity %

c-2

What would the cost of equity be if the debtequity ratio were 1.0?

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