What is crosby cost of equity capital

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Crosby Industries has a debt-equity ratio of 1.5. Its WACC is 8.5 percent, and its cost of debt is 6 percent. There is no corporate tax.

  • What is Crosby's cost of equity capital?
  • What would the cost of equity be if the debt-equity ratio were 2.0?
  • What would the cost of equity be if the debt-equity ratio were 0.5?
  • What would the cost of equity be if the debt-equity ratio were zero?

 

Reference no: EM131044578

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