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What is crosbys cost of equity capital

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Crosby Industries has a debt-equity ratio of 1.5. Its WACC is 10 percent, and its cost of debt is 7 percent. There is no corporate tax.

a.What is Crosbys cost of equity capital?
b.What would the cost of equity be if the debt-equity ratio were 2.0? What if it were 0.5? What if it were zero?

 

Reference no: EM13292303

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