What is company unlevered cost of equity capital

Assignment Help Financial Management

Reference no: EM131896945

Twice Shy Industries has a debt−equity ratio of 1.5. Its WACC is 7.9 percent, and its cost of debt is 6.8 percent. The corporate tax rate is 35 percent. a. What is the company’s cost of equity capital? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Cost of equity capital % b. What is the company’s unlevered cost of equity capital? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Unlevered cost of equity capital % c-1 What would the cost of equity be if the debt−equity ratio were 2? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Cost of equity % c-2 What would the cost of equity be if the debt−equity ratio were 1.0? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Cost of equity % c-3 What would the cost of equity be if the debt−equity ratio were zero? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Cost of equity %

Reference no: EM131896945

Questions Cloud

Discuss about the insurance fraud : ROLE REVERSAL: Write a short-answer question dealing with either misrepresentation on the part of an applicant for insurance or bad faith by an insurer.

Examine the problem and give result : ETHICS: Mark Wasser negotiated to purchase a 67-year-old apartment building from Michael and Anna Sasoni. The Sasonis told Wasser that the building.

Discuss issues of an easement : A client interested in buying a condominium wants your advice on how that form of ownership differs from others, what problems might arise.

What is the rationale behind a statute : ETHICS: Lisa Preece rented an apartment from Turman Realty, paying a $300 security deposit. Georgia law states: "Any landlord who fails to return any part.

What is company unlevered cost of equity capital : Twice Shy Industries has a debt-equity ratio of 1.5. Its WACC is 7.9 percent, What is the company’s unlevered cost of equity capital?

What ruling would you make on the summary judgment motion : Philip Schwachman owned a commercial building and leased space to Davis Radio Corp. for use as a retail store.

The? after-tax return on the corporate bond when tax rate : The? after-tax return on the corporate bond when the tax rate is? 10% is ? ?%

Draft a letter to the landlord asking for prompt repairs : Search for the law of your state concerning a landlord's obligation to provide a habitable apartment. Now assume that you are living in a rental unit.

Explain the weighted average cost of capital : Explain the weighted average cost of capital? What if you used 80% debt and 20% cash? What would be your new WACC?

User Account

All Pages