Solved: Crosby industries has a debt-equity ratio of 15 its wacc, Finance Basics

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Crosby industries has a debt-equity ratio of 15 its wacc

Crosby Industries has a debt-equity ratio of 1.5. Its WACC is 8.5 percent, and its cost of debt is 6 percent. There is no corporate tax.

What is Crosby's cost of equity capital?
What would the cost of equity be if the debt-equity ratio were 2.0?
What would the cost of equity be if the debt-equity ratio were 0.5?
What would the cost of equity be if the debt-equity ratio were zero?

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Finance Basics: Crosby industries has a debt-equity ratio of 15 its wacc

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Finance Basics: Crosby industries has a debt-equity ratio of 15 its wacc

Reference No:- TGS01390453

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