What is the companys unlevered cost of equity capital

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Skillet Industries has a debt-equity ratio of 1.4. Its WACC is 9.4%, and its cost of debt is 6.7%. The corporate tax rate is 35%.

(A) What is the company's cost of equity capital? (Round your answer to 2 decimal places)

(B) What is the company's unlevered cost of equity capital? (Round your answer to 2 decimal places)

(C-1) What would the cost of equity be if the debt-equity ratio were 2? (Round your answer to 2 decimal places)

(C-2) What would the cost of equity be if the debt-equity ratio were 1.0? (Round your answer to 2 decimal places)

(C-3) What would the cost of equity be if the debt-equity ratio were zero? (Round your answer to 2 decimal places)

Reference no: EM13829054

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