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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