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Weston Industries has a debt-equity ratio of 1.5. Its WACC is 11 percent, and its cost of debt is 7 percent. The corporate tax rate
Weston Industries has a debt-equity ratio of 1.5. Its WACC is 11 percent, and its cost of debt is 7 percent. The corporate tax rate is 35 percent. a. What is Westons cost of equity capital? (Do not round intermediate calculations and round your final answer to 2 decimal places) What is Weston's unlevered cost of equity capital? (Do not round intermediate calculations and round your final answer to 2 decimal places) What would the cost of equity be if the debt-equity ratio were 2? (Do not round intermediate calculations and round your final answer to 2 decimal places) What would the cost of equity be if the debt-equity ratio were 1.0? (Do not round intermediate calculations and round your final answer to 2 decimal places) What would the cost of equity be if the debt-equity ratio were zero? (Do not round intermediate calculations and round your final answer to 2 decimal places)
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