finance-Weston Industries has a debt–equity ratio of 1.2. Its WACC is 8.4 percent

QUESTION

Weston Industries has a debt–equity ratio of 1.2. Its WACC is 8.4 percent, and its cost of debt is 7.3 percent. The corporate tax rate is 35 percent.What is Weston’s unlevered cost of equity capital? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) Unlevered cost of equity capital: % c-1What would the cost of equity be if the debt–equity ratio were 2? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) Cost of equity: % c-2What would the cost of equity be if the debt–equity ratio were 1.0? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) Cost of equity: % c-3What would the cost of equity be if the debt–equity ratio were zero? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) Cost of equity:%

 

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