Weston Industries has a debt-equity ratio of 1.6. Its WACC is 12 percent, and its cost of
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Question:
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.Weston's cost of equity capital is __percent.
b.Weston's 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.
Please compute all five answers:
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