What is shatin company cost of equity

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Problem a. What is ShaTin Company's cost of equity? Under the tax rate of 20%, an unlevered firm ShaTin Company's WACC is currently 11 percent. The company can borrow at 7 percent.

Problem b. If the firm converts to 20 percent debt, what will its cost of equity be?

Problem c. If the firm converts to 60 percent debt, what will its cost of equity be?

Problem d. What is ShaTin Company's WACC in part (b)? In part (c)?

Reference no: EM132814085

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