Debt-equity ratio-cost of equity

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Weston Industries has a debt-equity ratio of 1.8. Its WACC is 11 percent, and its cost of debt is 10 percent. The corporate tax rate is 33 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.

Reference no: EM131063060

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Debt-equity ratio-cost of equity : Weston Industries has a debt-equity ratio of 1.8. Its WACC is 11 percent, and its cost of debt is 10 percent. The corporate tax rate is 33 percent. The cost of equity would be percent if the debt-equity ratio were 2, percent if the debt-equity ratio ..

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