What is the company cost of equity for irving corp

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Irving Corp. has no debt but can borrow at 8.25 percent. The firm's WACC is currently 15 percent, and there is no corporate tax.

Problem 1: What is the company's cost of equity? (Do not round intermediate calculations and enter your answer as a percent rounded to the nearest whole number, e.g., 32.)

Problem 2: If the firm converts to 20 percent debt, what will its cost of equity be? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Problem 3: If the firm converts to 55 percent debt, what will its cost of equity be? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Problem 4: What is the company's WACC in parts b) and c)? (Do not round intermediate calculations and enter your answers as a percent rounded to the nearest whole number, e.g., 32.)

Reference no: EM132957143

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