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| Teaching Since: | May 2017 |
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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
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Twice Shy Industries has a debtAcˆ’equity ratio of 1.8. Its WACC is 8.3 percent, and its cost of debt is 6.3 percent. The corporate tax rate is 35 percent. |
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| a. |
What is the companyAc€?cs cost of equity capital? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
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| Â Â Cost of equity capital | %Â Â |
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| b. |
What is the companyAc€?cs unlevered cost of equity capital? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
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| Â Â Unlevered cost of equity capital | %Â Â |
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| c-1 |
What would the cost of equity be if the debtAcˆ’equity ratio were 2? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) |
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| Â Â Cost of equity | %Â Â |
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