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Weston Industries has a debtequity ratio of 1.1. Its WACC is 7 percent, and its cost of debt is 5.6 percent. The corporate tax rate
Weston Industries has a debtequity ratio of 1.1. Its WACC is 7 percent, and its cost of debt is 5.6 percent. The corporate tax rate is 35 percent. What is Westons unlevered cost of equity capital? What would the cost of equity be if the debt-equity ratio were 2? What would the cost of equity be if the debt-equity ratio were 1? 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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