What is cost of equity, Shadow Corp. has no debt but can

What is cost of equity

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Reference no: EM131066437

Shadow Corp. has no debt but can borrow at 7.4 percent. The firm’s WACC is currently 9.2 percent, and the tax rate is 35 percent. a. What is Shadow’s cost of equity? (Do not round intermediate calculations.) Cost of equity 9.2 % b. If the firm converts to 35 percent debt, what will its cost of equity be? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) Cost of equity % c. If the firm converts to 60 percent debt, what will its cost of equity be? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) Cost of equity % d-1 If the firm converts to 35 percent debt, what will the company's WACC be? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) WACC % d-2 If the firm converts to 60 percent debt, what will the company's WACC be? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) WACC %

Reference no: EM131066437

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What is cost of equity : Shadow Corp. has no debt but can borrow at 7.4 percent. The firm’s WACC is currently 9.2 percent, and the tax rate is 35 percent. What is Shadow’s cost of equity? what will its cost of equity be? If the firm converts to 60 percent debt, what will the..

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