What is westons cost of equity capital

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Weston Industries has a debt-equity ratio of 1.5. Its WACC is 9.2 percent, and its cost of debt is 6%. The Corporate tax rate is 35%.

a. What is Weston’s cost of equity capital?

b. What is Weston’s unlevered cost of equity capital?

c-1. What would the cost of equity be if the deb-equity were 2?

c-2. What would the cost of equity be if the debt-equity ratio were 1?

c-3. What would the cost of equity be if the debt-equity ratio were 0?

Reference no: EM13765096

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