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Weston Industries has a debt-equity ratio of 1.6. Its WACC is 12 percent, and its cost of debt is 10 percent. The corporate tax rate
Weston Industries has a debt-equity ratio of 1.6. Its WACC is 12 percent, and its cost of debt is 10 percent. The corporate tax rate is 35 percent. (Do not include the percent signs (%). Round your answers to 2 decimal places. (e.g., 32.16)) |
Required: |
a. | Westons cost of equity capital is percent. |
b. | Westons unlevered cost of equity capital is percent. |
c. | The cost of equity would be percent if the debt-equity ratio were 2, percent if the debt-equity ratio were 1, and percent if the debt-equity ratio were 0. |
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