What is unlevered cost of equity capital

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Weston Industries has a debt–equity ratio of 1.8. Its WACC is 8.3 percent, and its cost of debt is 6.3 percent. The corporate tax rate is 35 percent.

A) What is Weston's cost of equity capital? (Do not round intermediate calcuations. Round answer to 2 decimal places)

B) What is Weston's unlevered cost of equity capital? (Do not round intermediate calcuations. Round answer to 2 decimal places)

C) What would the cost of equity be if the debt-equity ratio were 2? (Do not round intermediate calcuations. Round answer to 2 decimal places)

D) What would the cost of equity be if the debt-equity ratio were 1? (Do not round intermediate calcuations. Round answer to 2 decimal places)

E) What would the cost of equity be if the debt-equity ratio were 0? (Do not round intermediate calcuations. Round answer to 2 decimal places)

Reference no: EM131178132

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