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Twice Shy Industries has a debt-equity ratio of 1.7. Its WACC is 9.6 percent, and its cost of debt is 7 percent. The corporate tax
Twice Shy Industries has a debt-equity ratio of 1.7. Its WACC is 9.6 percent, and its cost of debt is 7 percent. The corporate tax rate is 35 percent. a. What is the company's cost of equity capital? (Do not round intermediate calculations. 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. 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. 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 1.0? (Do not round intermediate calculations. 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. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
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