Cost of equity capital of crosby industries, Finance Basics

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Cost of equity capital of crosby industries

Crosby Industries has a debt-equity ratio of 1.5. Its WACC is 9 percent, and its cost of debt is 6 percent. There is no corporate tax.

a. What is Crosby's cost of equity capital?

b. What would the cost of equity be if the debt equity ratio were 2.0? What if it were 0.5? What if it were zero?

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Finance Basics: Cost of equity capital of crosby industries

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Finance Basics: Cost of equity capital of crosby industries

Reference No:- TGS052166

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Recent Questions Asked Finance Basics

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Finance Basics: Cost of equity capital of crosby industries

Reference No:- TGS052166

Recent Questions Asked Finance Basics

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