Reference no: EM13949994
Chandeliers Corp. has no debt but can borrow at 7.8 percent. The firm’s WACC is currently 9.6 percent, and the tax rate is 35 percent.
a. What is the company’s cost of equity? (Round your answer to 2 decimal places. (e.g., 32.16)) Cost of equity %
b. If the firm converts to 30 percent debt, what will its cost of equity be? (Round your answer to 2 decimal places. (e.g., 32.16)) Cost of equity %
c. If the firm converts to 50 percent debt, what will its cost of equity be? (Round your answer to 2 decimal places. (e.g., 32.16)) Cost of equity %
d-1 If the firm converts to 30 percent debt, what is the company’s WACC? (Round your answer to 2 decimal places. (e.g., 32.16)) WACC %
d-2 If the firm converts to 50 percent debt, what is the company’s WACC? (Round your answer to 2 decimal places. (e.g., 32.16)) WACC %
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: Chandeliers Corp. has no debt but can borrow at 7.8 percent. The firm’s WACC is currently 9.6 percent, and the tax rate is 35 percent. What is the company’s cost of equity? If the firm converts to 30 percent debt, what will its cost of equity be? If ..
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