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What is winston cost of equity capital

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Reference no: EM133106816

Question - Winston Industries has a debt-equity ratio of 2. Its WACC is 10%, and its cost of debt is 12%. The corporate tax rate is 35%.

Required -

(i) What is Winston's cost of equity capital?

(ii) What is Winston's unlevered cost of equity capital?

(iii) What would the cost of equity be if the debt-equity ratio were 2?

Reference no: EM133106816

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