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Weston Industries has a debtequity ratio of 1.1. Its WACC is 9.6 percent, and its cost of debt is 7.2 percent. The corporate tax rate

Weston Industries has a debtequity ratio of 1.1. Its WACC is 9.6 percent, and its cost of debt is 7.2 percent. The corporate tax rate is 35 percent.

a. What is Westons cost of equity capital?

b. What is Westons unlevered cost of equity capital?

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

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

e. What would the cost of equity be if the debtequity ratio were zero?

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