chp 7, #2 all of the answers but (A) are wrong. please help me. Thanks...
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chp 7, #2
all of the answers but (A) are wrong. please help me. Thanks
Shadow Corp. has no debt but can borrow at 7.2 percent. The firm's WACC is currently 9 percent, and the tax rate is 35 percent a. What is the company's cost of equity? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Cost of equity I its cost of equity be? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g.. 32.16.) Cost of equity intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g 10.08 c. If the company converts to 60 percent debt, what will its cost of equity be? (Do not round 32.16.) Cost of equity 15.481% d-1.If the company converts to 20 percent debt, what will the company's WACC be? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g. 32.16.) 1332 % d.2. If the company converts to 60 percent debt, what will the company's WACC be? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g. 32.16.) WACC 15.19 % O Type here to search
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