The equity beta for National Napkin Company is 1.29. National Napkin has a debt-to equity ratio of

Question:

The equity beta for National Napkin Company is 1.29. National Napkin has a debt-to equity ratio of 1.0. The on the market is 13 percent. The risk-free rate is 7 percent. The capital is 7 percent. There are no corporate taxes.
(a) What is National Napkin’s cost of equity?
(b) What is National Napkin’s Unlevered?
(c) Calculate rWACC

Cost Of Debt
The cost of debt is the effective interest rate a company pays on its debts. It’s the cost of debt, such as bonds and loans, among others. The cost of debt often refers to before-tax cost of debt, which is the company's cost of debt before taking... Expected Return
The expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR). It is calculated by multiplying potential outcomes by the chances of them occurring and then totaling these...