What would the cost of equity be if the debt-equity ratio

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Reference no: EM131556013

1. Weston Industries has a debt–equity ratio of 1.6. Its WACC is 8.6 percent, and its cost of debt is 6.1 percent. The corporate tax rate is 35 percent.

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

2. Weston Industries has a debt–equity ratio of 1.6. Its WACC is 8.6 percent, and its cost of debt is 6.1 percent. The corporate tax rate is 35 percent.

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

Reference no: EM131556013

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