What is company unlevered cost of equity capital

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Reference no: EM131567409

Twice Shy Industries has a debt−equity ratio of 1.7. Its WACC is 9.6 percent, and its cost of debt is 7 percent. The corporate tax rate is 35 percent.

a. What is the company’s cost of equity capital?

Cost of equity capital ______ 18.18 %

b. What is the company’s unlevered cost of equity capital?

Unlevered cost of equity capital _______________%

c-1. What would the cost of equity be if the debt−equity ratio were 2?

Cost of equity __________________%

c-2. What would the cost of equity be if the debt−equity ratio were 1.0?

Cost of equity _______________%

c-3. What would the cost of equity be if the debt−equity ratio were zero?

Cost of equity _________________%

Reference no: EM131567409

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