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What is the companys cost of equity

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Reference no: EM132370232

Shadow Corp. has no debt but can borrow at 7.7%. The firm's WACC is currently 9.5% and the tax rate is 35%

a) What is the companys cost of equity?

b) If the firm converts to 20% debt, what will its cost of equity be?

c) If the firm converts to 50% debt, what will its cost of equity be?

d) If the firm converts to 20% debt, what will the company's WACC be?

e) If the firm converts to 50% debt, what will the company's WACC be?

Reference no: EM132370232

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