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Weston Industries has a debt-to-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-to-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. (Do not round intermediate calculations. Round the final answers to 2 decimal places. Omit % sign in your response.) a. What is Weston's cost of equity capital? Cost of equity capital % b. What is Weston's unlevered cost of equity capital? Unlevered cost of equity capital % c-1. What would the cost of equity be if the debt-to-equity ratio were 2 ? Cost of equity % c2. What would the cost of equity be if the debt-to-equity ratio were 1.0 ? Cost of equity % c-3. What would the cost of equity be if the debt-to-equity ratio were 0 ? Cost of equity %
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