What is the company cost of equity capital-debt

What is the company cost of equity capital-debt–equity ratio

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Reference no: EM131547778

Crosby Industries has a debt–equity ratio of 1.1. Its WACC is 12 percent, and its cost of debt is 5 percent. There is no corporate tax.

a. What is the company’s cost of equity capital? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Cost of equity %

b. What would the cost of equity be if the debt–equity ratio were 2? (Do not round intermediate calculations and enter your answer as a percent rounded to the nearest whole number, e.g., 32.)

Cost of equity %

What would the cost of equity be if the debt–equity ratio were .6? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Cost of equity %

What would the cost of equity be if the debt–equity ratio were zero? (Do not round intermediate calculations and enter your answer as a percent rounded to the nearest whole number, e.g., 32.)

Cost of equity %

Reference no: EM131547778

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